Negotiation, development and application of non-competitive agreements and related restrictive agreements, MCLE, 2015 In particular, the law applies only to non-competition prohibitions and does not apply to non-requests or agreements made by customers or employees in connection with the sale of a business. Therefore, Massachusetts employers who believe that a restrictive pact is necessary to protect a legitimate business interest should consider using “staggered” agreements. In other words, if an agreement is reached after the beginning of the employment relationship, but not in the context of worker separation and employment, the agreement must be another means of redress: the use of the “blue pencil” or the power of a Massachusetts court to reform the terms of the non-competition clause in order to appropriately transform unreasonable provisions. This may include reforming the geographical area covered by the agreement or the duration of the agreement. However, employers should not rely on this “blue pencil” because it is entirely at the discretion of the court. An agreement that can be reached from the outset is a much better option. By Scott A. Holt, Barry M. Willoughby and William W. Bowser. Bureau of National Affairs, lose-blatt. The law expressly prohibits the application of a non-compete clause against the following categories of workers: a referral order is a court order that prevents a person from committing a particular act or obliges that person to participate in a particular act.
In the non-competitive environment, the typical arrangement is to prevent the worker from working for a new employer. Baker v. Dunkin` Donuts, Inc. , 442 Mass. 635 (2004) In the circumstances, “the non-compete agreements signed by the applicant under his franchise agreements with the defendant were enforceable.” If an employee violates the terms of a non-compete agreement, an employer can take legal action to enforce the agreement. The burden of proof rests with the employer in such an action. This means that the employer must prove that the non-competition clause complies with the above elements and that the worker has signed the non-competition agreement. The law applies to non-competition prohibitions and defines a “non-compete agreement” as: under Massachusetts law, a non-compete clause does not apply to a low-wage employee.
The law provides that workers considered “tax-free” by the FLSA may not be required to sign a non-compete agreement. We advise you to consult a consultant to ensure compliance with the new law and to limit the potential legal and financial risks associated with non-compliance with your non-competition agreement. It is contrary to Massachusetts public policy to allow non-competitive agreements with these specific professions. The goal is to protect public health and the free flow of information and ideas. A non-competition agreement in one of these areas is not legally applicable.