Bill > H1701

This bill, concerning the judicial enforcement of noncompetition agreements, proposes to amend Chapter 149 of the Massachusetts General Laws by adding a new Section 19D. This new section declares that any written or oral agreement arising from an employment or independent contractor relationship that restricts a person's ability to seek, engage in, or accept any type of work for any period after the relationship ends will be void and unenforceable to that extent. However, this does not invalidate the rest of the agreement, nor does it prevent a court from imposing a noncompetition restriction as a remedy for other breaches of contract or legal duties. The bill also clarifies that this section does not affect agreements related to soliciting employees or customers, nondisclosure agreements, noncompetition agreements made in connection with the sale of a business where the restricted party is a significant owner, noncompetition agreements outside of employment, forfeiture agreements, or agreements where an employee agrees not to reapply for employment with the same employer. This new provision will apply to all contracts and agreements entered into after the bill becomes law.