Bill > H4434

This bill, titled "Relative to the judicial enforcement of noncompetition agreements," aims to establish new regulations for noncompetition agreements and introduce the Uniform Trade Secrets Act in Massachusetts. Specifically, it repeals existing laws related to noncompetition agreements and introduces a new chapter (Chapter 93L) that defines and provides legal remedies for the misappropriation of trade secrets, which are defined as valuable, confidential business information that provides a competitive edge and is actively protected. The bill also enacts the "Massachusetts Noncompetition Agreement Act" (Section 24L of Chapter 149), which sets strict requirements for noncompetition agreements to be considered valid and enforceable, including limitations on their duration (generally 12 months, with exceptions for breaches of fiduciary duty or theft of property), geographic scope, and the types of activities restricted, and mandates that such agreements must be supported by consideration like a "garden leave clause" (where the employer pays the employee at least 50% of their salary during the restricted period). The bill also specifies that noncompetition agreements are not enforceable against certain workers, such as those classified as non-exempt under federal law, interns, employees terminated without cause, or those under 18, and allows courts to reform overly broad agreements. These new provisions regarding noncompetition agreements will apply to those entered into on or after October 1, 2016, while the Uniform Trade Secrets Act will take effect on the same date but will not apply to misappropriation that occurred before its effective date.