Bill > H1719

This bill amends Chapter 149 of the General Laws to prohibit most noncompetition agreements, which are contracts that prevent an employee or former employee from working in a similar profession, trade, or business. The bill defines terms like "business entity" (including partnerships, limited liability companies, and corporations), "owner of a business entity," "ownership interest," and "subsidiary" (a business controlled by another). While generally banning these agreements, the bill carves out specific exceptions, allowing noncompetition clauses in situations where a business's goodwill is sold, or when an owner is selling all their interest in a business entity, a division, or a subsidiary, provided the buyer continues to operate a similar business within a specified geographic area. It also permits such agreements in cases of partnership dissolution or limited liability company termination, again with the condition that another member continues the business in the same area. Importantly, this bill clarifies that it does not restrict the use of non-disclosure agreements to protect trade secrets and other confidential information.