Non-Compete Agreements in Massachusetts: What Tech Workers Need to Know
Massachusetts reformed its non-compete law in 2018 with the Massachusetts Noncompetition Agreement Act (MNAA). The law introduced significant employee protections while still allowing enforceable non-competes that meet specific requirements.
Key Requirements Under the MNAA
Formal Requirements
- Must be in writing and signed by both parties
- Must state the employee has the right to consult with counsel
- For new hires: must be provided before formal offer or 10 business days before start
- For current employees: must be supported by fair and reasonable consideration
Garden Leave OR Mutual Restriction Required
Employers must provide one of:
- Garden leave: Pay at least 50% of highest base salary during restriction period, OR
- Mutually agreed consideration: Both parties agree on adequate consideration
Duration Limits
- Generally limited to 12 months
- Up to 24 months if employee breached fiduciary duty or stole property
Workers Who Cannot Be Restricted
Non-competes are prohibited for:
- Non-exempt employees (hourly workers)
- Undergraduate or graduate student interns
- Employees terminated without cause or laid off
- Employees under 18
Geographic and Scope Limitations
Restrictions must be:
- No broader than necessary to protect legitimate business interests
- Limited to geographic areas where employee provided services
- Reasonable relative to the employee's role
The Tech Industry Impact
Massachusetts has a strong tech sector, and the MNAA reflects concerns about employee mobility:
- Garden leave requirement means employers pay a real cost for restrictions
- 12-month maximum prevents long lockouts from the industry
- Cannot restrict hourly workers (common in tech support roles)
Practical Advice
- Verify garden leave or consideration is documented
- Check if you're in an exempt category (hourly, intern, etc.)
- Note whether you were terminated for cause or without cause—this matters
- Confirm the agreement was provided with proper timing
Frequently Asked Questions
Does Massachusetts require garden leave for non-competes?
Yes, under the 2018 Massachusetts Noncompetition Agreement Act, employers must either provide garden leave (paying at least 50% of highest base salary during the restriction) or mutually agreed consideration for the non-compete to be enforceable.
How long can a non-compete last in Massachusetts?
Massachusetts law limits non-competes to 12 months in most cases. The only exception allows up to 24 months if the employee breached fiduciary duties or stole employer property.
Are hourly workers covered by Massachusetts non-competes?
No, non-competes are prohibited for non-exempt (hourly) employees in Massachusetts. The law also prohibits non-competes for interns, employees under 18, and those terminated without cause.
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