Compensation For Non-Competes

By on August 9, 2018

August 9, 2018

Governor Charlie Barker of Massachusetts has indicated that he will sign a bill passed by the legislature that requires companies to give employees some kind of compensation for up to a year after leaving, if the company decides to enforce a non-compete agreement. It offers a guideline of paying at least 50 percent of the employee’s salary or a “mutually agreed upon consideration.” States vary in what they require of employers in respect to non-compete agreements. California bans them, other states are more solicitous of employers’ rights to enforce them. A late Obama administration initiative spotlighted non-competes being enforced against fast food and other low wage workers, and pressured companies to reconsider their policies. The Massachusetts bill mandates that employees must have time to review non-compete agreements before being asked to sign them. It restricts the enforcement period to a year, and bans enforcement for certain kinds of employees, including those who’ve been laid off and “non-exempt” workers (typically, hourly paid workers who can receive overtime).
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The Washington Post

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