Bill > H1761

This bill, titled "Relative to the prohibition of noncompetition agreements," amends Chapter 149 of the General Laws by adding a new section that generally prohibits contracts restricting employees or former employees from engaging in lawful professions, trades, or businesses. However, it carves out specific exceptions, allowing for noncompetition agreements in certain situations, such as when a person sells the goodwill of a business, an owner of a business entity sells their entire interest in the entity, or when a business sells all or substantially all of its operating assets along with its goodwill. These exceptions permit agreements to refrain from carrying on a similar business within a specified geographic area where the business was previously conducted, provided the buyer continues to operate a like business. The bill also addresses similar agreements in the context of partnership dissolutions or dissociations and limited liability company dissolutions, allowing partners or members to agree to refrain from similar business activities within a defined area. Importantly, this bill clarifies that it does not limit the creation or enforcement of non-disclosure agreements designed to protect trade secrets and other confidential information.