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?
Knowing in advance whether a judge will enforce an employee's non-compete clause can be difficult. Even if the employee's interests may be important Massachusetts courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Bolton that are unreasonably large.
Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.
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 Bolton, 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. A lawyer can also render useful advice for employers who are considering suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.