The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Massachusetts Employee Confidentiality and Unfair Competition - Noncompetition - Agreement
State:
Multi-State
Control #:
US-00046
Format:
Word;
Rich Text
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FAQ
An "anti-raiding" restrictive covenant is only reasonable, and thus enforceable, if it is (1) necessary to protect a legitimate business interest, (2) reasonably limited in time and space, and (3) consonant with the public interest.
Providing restrictive covenants are not void for restraint of trade and required to protect legitimate business interests, they will be viewed as legally binding.
Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
Under the Massachusetts Noncompetition Agreement Act (MNAA), for non-compete agreements entered into on or after October 1, 2018, courts will not enforce any choice- of-law provision if both: The provision has the effect of avoiding the requirements under the MNAA.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
In Massachusetts, a non-compete is only enforceable to protect a legitimate business interest. Certain recognized interests include: the protection of trade secrets, confidential information such as client lists, computer data, and business plans, and.
Certain restrictive covenants will be enforceable, if you are able to prove that they are: reasonable. necessary to protect legitimate business interests; and. of a duration no longer than is necessary to protect those interests.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
Yes. However, the restriction is more likely to be upheld if the clause only restricts the employee from dealing with customers/clients with whom the employee had contact with during a specified period (often 12 months) before termination. The restriction should also be limited in time.