Update on Noncompete Legislation Pending in the Massachusetts Legislature
Last April, I summarized in detail a pending bill (House No. H4607) which would amend the current law on noncompetes. (See April 13, 2010 Blog Entry). The bill was considered a compromise bill since there was other legislation filed that sought to make all noncompetes in Massachusetts unenforceable (similar to California). While that bill has not progressed at all, many observers thought that the “compromise bill” would have support, even though it would have made many current agreements unenforceable and would have made it more difficult for employers to protect proprietary information.
Last week, the bill died in Committee. Obviously, the hearings that were supposed to occur this coming January will not happen. In essence, the current law on noncompetes in Massachusetts remains intact. However, one of the bill’s sponsors, Senator Brownsberger, stated to the press last week that he plans to introduce another bill on the same subject.
As in the past, we will continue to monitor the progress of this new legislation and keep you posted.
