Last week, the First Circuit affirmed a preliminary injunction enforcing a one-year non-solicitation agreement against the Massachusetts-based former sales director of a California-based health care company that develops products to treat spinal disease. The sales director resigned from his position with the health care company to found and work for an exclusive distributor for the health care company. A few months later, the sales director dissolved his new company,… More
Last week U.S. District Judge Zobel denied a road assistance service provider’s motion to stop its former vice president of sales from working for a competitor, citing the employer’s enforceable customer non-solicitation and confidentiality provisions as a reason not to enforce a broad non-compete provision. The ruling on the preliminary injunction motion in Agero Administrative Service Corp. v. Campolo allowed the former employee to work for the competitor but prohibited him from soliciting certain customers of his former employer.… More
It is well known that under California law, post-employment non-competition agreements are unenforceable, except in very limited circumstances. California courts have been slightly more forgiving of non-solicitation provisions, both as to employees and customers. Employee non-solicitation provisions occasionally have been upheld when tested against a reasonableness standard.… More
As previously reported, the new Massachusetts law governing non-competition agreements takes effect on Monday, October 1. A comprehensive summary of the law is here. The most significant takeaways are the following:
- The law applies to post-employment noncompetes entered into on or after October 1, 2018 by Massachusetts workers and residents.
- The law does not apply to other kinds of restrictions, including non-solicitation agreements. …
On September 7, 2018, the Massachusetts Supreme Judicial Court refused to enforce a non-competition and non-solicitation agreement between a Massachusetts company and its California-based former employee who joined the employer’s competitor in California. The SJC reached this decision, in Oxford Global Resources v. Hernandez, even though the agreement was expressly governed by Massachusetts law and designated Massachusetts as the forum for all disputes concerning the agreement.… More
After years of debate, the Massachusetts Legislature recently passed a comprehensive noncompete reform law, and Governor Baker signed the bill on August 10, 2018. The new law overhauls existing law and imposes new prohibitions and requirements for noncompetes signed by Massachusetts workers as of October 1, 2018. Every Massachusetts employer that uses noncompetes will need to change its agreements and practices.
As expected, yesterday (August 10, 2018) Governor Baker signed the new Massachusetts noncompete bill into law. A summary of the law is here. Although some industry groups were urging the governor to reject the bill or send it back to the legislature to correct flaws and ambiguities, he signed it without changes.
The law takes effect on October 1 and will apply to non-competition agreements entered into on and after that date. … More
After years of debate, the Massachusetts legislature late last night passed a comprehensive noncompete reform law. If, as expected, Governor Baker signs the bill in the next 10 days, it will take effect on October 1, 2018 and apply to agreements executed after that date. (It does not apply retroactively to existing agreements.)
As the summary below makes clear, the law represents a compromise between those who believe noncompetes should be abolished because they are fundamentally unfair to employees and bad for the Massachusetts economy,… More
The Massachusetts legislature ended its 2015-16 session last night without reaching a compromise on a bill to significantly reform the law of non-competition agreements in the Commonwealth. Negotiations continued late into the waning hours of the session, but legislators could not resolve the significant differences between the competing reform visions represented by the House and Senate bills. Early reports indicate that the final disagreement was focused on the garden leave requirement,… More
As expected, the Massachusetts Senate last night passed comprehensive legislation on non-competition agreements that imposes significantly more stringent requirements and limitations on noncompetes than is present in the legislation passed by the House two weeks ago (which already would significantly alter current law). The bill passed by the full Senate differs only slightly from the the proposal advanced by the Rules Committee earlier this week and described in this post. … More