In California,
it is inherently unlikely an employer can enforce a non-compete agreement (also
known as a restrictive covenant). California Business and Professions Code
Section 16600 is a specific legislative act that prohibits covenants that
restrict somebody’s ability to work in their profession and earn a
livelihood.
Massachusetts
does not have an equivalent of California Business and Professions Code Section
16600. Massachusetts law on non-compete agreements
is therefore diametrically opposed to California’s.
In Massachusetts,
non-compete agreement are usually valid except for exception. One exception is
the agreement must be signed each time the employee becomes an employee of the
employer. Quite possibly, the restrictive covenant must be signed each time the
job materially changes. Obviously, a signed non-compete agreement is required
in Massachusetts.
Boston
is known as a technology and bio-science hub. The number of graduates from Boston’s many fine
universities create pools of employees in industries where trade secrets are
everything. Accordingly, non-compete agreements are common in Boston and surrounding communities.
Employees move on, especially young people. In the case of a somewhat
recent university graduates, they might soon move back to their home state. Difficult
questions sometimes arise when a court is asked to enforce a non-compete
agreement written in another state.
I encourage other lawyers and employees to comment on their experiences
with restrictive employment covenants in different states. Do not divulge
confidential information, or attempt to ask attorney-client privileged
information. Nor should you bad mouth your employer. A lively discussion on
which states have enforced non-compete agreements and what exceptions various
states have would be most informative to the workplace.
If you have any legal issues about the workplace in California, the District of Columbia, Massachusetts, or Texas feel free to contact my firm at 877-525-0700, or view my California Labor or Massachusetts websites.
Karl Gerber, Representing Employees in California Since 1993
