Non-Compete Agreements

On August 10, 2018, Massachusetts Governor Charlie Baker signed into law a piece of legislation entitled “An Act Relative to Economic Development in the Commonwealth.”  This new legislation brings long-awaited non-compete reform to Massachusetts, and lays out some new guidelines for business owners to consider when determining whether or not to require employees to sign true non-compete agreements that would prohibit a departing employee from engaging in competitive activities.  Continue Reading What Business Owners Should Know About Massachusetts’ New Non-Compete Law

In connection with the purchase of a family-owned business, the buyer may seek a non-compete agreement from the selling owners and certain family member employees.  Such agreements are intended to protect the buyer from a seller’s competition with the business post-sale and from diversion of the customer relationships and goodwill that typically are part of the purchased assets.  Courts will generally enforce a non-compete agreement negotiated as part of a business sale as long as it is reasonable in geographic scope and duration.  What is reasonable will depend on factors such as the type of business being purchased, the pre-sale geographic reach of the business, and the consideration paid for the restriction on the seller’s future competition.  Parties to a non-compete should therefore carefully consider these factors when drafting the agreement.  The parties also should carefully define what type of “competitive” conduct will be restricted.    Continue Reading Is A Non-Compete Agreement In Connection With The Purchase And Sale Of A Family-Owned Business Enforceable?