The controversial non-compete agreement bill filed in the Massachusetts Legislature earlier this year has stalled. The bill’s latest setback occurred when it was not included in the state’s recently approved Economic Development Act.
The non-compete agreement bill, which had gained much support and appeared to be poised for approval in the spring, would have made dramatic changes in the enforceability of non-compete agreements in Massachusetts. Under the bill, the scope of employees who could be subject to a non-compete agreement would have been narrowed. Non-compete agreements would have been invalid and unenforceable against employees earning less than $75,000 per year. The bill also required employers “to the extent feasible” to provide a prospective employee with a copy of the non-compete agreement and a notice that the non-compete agreement is a condition of employment, either seven days before the commencement of work or in a written employment offer. If an employment offer was oral, the employer would have been required to inform the prospective employee at the time that the offer was made that the non-compete agreement is a condition of employment or provide the prospective employee with a written notice of the non-compete requirement before the employee terminated his or her current employment.
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