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Massachusetts Noncompete Reform Legislation Fails

As a follow up to our recent post on the subject, the Massachusetts legislature failed to enact reform to noncompete agreements by the July 31, 2016 legislative deadline, despite both the House and the Senate passing versions of the bill. The primary point of disagreement between the two legislative houses concerned the “garden leave” provision that would require employers to compensate employees during the restrictive period. State legislators involved in the negotiations reported that the House wanted employers and employees to negotiate the monetary value of the “garden leave” clause when the agreement was initially signed, while the Senate wanted employees to be able to negotiate when leaving the employer in order to provide greater bargaining power to the employees. Although noncompete reform will not happen this year, legislators will likely revive the bill in the next session.