The
proposed noncompetition legislation that we reported on in May
2010 has died a quiet death, at least for now. The noncompetition
legislation was dropped from the economic development law that recently made
its way through Beacon Hill. Many Massachusetts employers
had been apprehensive about the proposed law – and with good reason.
If enacted, it would have thrown countless noncompetition agreements into doubt
and made it more difficult for businesses to protect confidential
information and customer relationships. While Massachusetts employers can breathe a sigh
of relief, the respite may be short-lived. One of the bill’s sponsors, Senator
William N. Brownsberger, has been quoted as saying he soon intends to introduce
a new bill on the same subject.
Prince Lobel will continue to monitor and report on this story as well as other
important developments in the area of noncompetition law.
If you would like more information about the use or enforcement of
noncompetition agreements or other restrictive covenants, please contact Daniel
S. Tarlow, the author of this Alert, at 617 456 8013 or dtarlow@princelobel.com.