Labor and Employment Update

A non-compete agreement typically seeks to restrict an employee’s ability to leave one company and join a competitor for a specified amount of time after leaving. They are common in the tech industry, and large tech firms typically oppose any legislative attempts to limit their use. Others suggest that these agreements unduly restrict the workforce and restrain startup companies.

Last week, the Joint Committee on Labor and Workforce Development hosted dozens to testify for and against limitations on non-compete agreements. Among those testifying was Governor Deval Patrick’s Secretary of Housing and Economic Development, Gregory Bialecki. Governor Patrick has consistently indicated his support for increased regulation of these agreements, and Secretary Bialecki stated that the administration seeks outright elimination of the enforceability of non-compete agreements in Massachusetts. 

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