Massachusetts Governor Proposes Sweeping Legislation Banning Non-Compete Agreements

Last week, Massachusetts Governor Deval Patrick proposed sweeping legislation that would eliminate employee non-compete agreements in Massachusetts.  While it remains to be seen whether this bill will actually become law, employers should be aware of the potential implications of this far-reaching bill, and should implement steps sooner rather than later to protect their trade secrets and confidential information should non-competes become unenforceable in the Commonwealth.

Eliminating All Employee Non-Competes in Massachusetts

The Governor’s bill, entitled “An Act to Promote Growth and Opportunity” (HB4045), includes a provision that would invalidate all non-compete agreements in Massachusetts, with a few very limited exceptions, regardless of industry.  This would bring Massachusetts in line with only California and North Dakota, the only other states that prohibit employee non-compete agreements. 

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