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More MA Legislative Developments in Trade Secrets and Non-Competes

May 9, 2014 Leave a comment

By: Christopher PerryEmployment Attorney Christopher Perry

On April 29, the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development favorably reported out a bill which would enact a version of the Uniform Trade Secrets Act (“UTSA”) coupled with a ban on non-competition agreements in Massachusetts.  The bill is quite similar to the Patrick Bill we described in our April 15, 2014 Employment Law Alert.  This marks the first time that the Joint Committee has favorably reported out a bill to the legislature that would regulate non-competition agreements in the Commonwealth.  The current legislative session ends as of July 31, so it remains to be seen if the legislature will take any action on the new bill.

For more information on this topic, please contact Chris Perry.

Patrick Administration Seeks to Ban Non-Compete Agreements

April 15, 2014 Leave a comment

During the past several years, there have been various legislative initiatives in Massachusetts which, if successful, would have regulated and/or curtailed the use by employers of non-competition agreements.  On September 10, 2013, in testimony before the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development, Gregory Bialecki, Governor Patrick’s Secretary of Housing and Workforce Development, testified that the Patrick Administration supports the “outright elimination of enforceability” of all non-compete agreements in Massachusetts, regardless of duration or geographic scope.  Secretary Bialecki’s testimony finally confirmed publicly what many assumed was the Patrick Administration’s position on this controversial subject.

Last Thursday, the Patrick Administration took a bigger step towards its goal of eliminating non-compete agreements by way of an economic stimulus bill that includes a proposed new Chapter 93K to enact the Uniform Trade Secrets Act (“UTSA”) in Massachusetts. The proposed Chapter also includes a provision which would render “void and unenforceable” any non-compete agreement with an employee or independent contractor.

For more information on what this means for employers, please see the full Alert.

If you have any questions, please feel free to contact a member of MBBP’s Employment Law Group.