In general, covenants not to compete involve an employee in the state of Massachusetts who agrees not to work for competitors of their employer when they leave the company. Such covenants are frequently called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.
When are Covenants not to Compete Unenforceable?
Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. Although the interests of employers are important, courts in Massachusetts also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Waltham that are unreasonably large.
The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before you sign any documents that could restrict your rights, you may consider hiring a Waltham, Massachusetts attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.
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