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 often called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they can 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 hard. Even if the employee's interests may be significant 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. Covenants not to compete that a court will categorize as unreasonable include agreements that last for a long duration or that restrict the employee to an unreasonable geographic area around Haverhill.
Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer's industry. Finally, the employer needs to have an acceptable business purpose 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?
You might want to hire a Haverhill, Massachusetts lawyer to review the covenant before signing any provisions that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. Attorneys can provide valuable counseling to employers who are contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.
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