The Massachusetts Noncompetition Agreement Act (MNAA) took effect in October 2018, imposing certain statutory requirements for noncompete provisions to be enforceable. When the statute became law, many eagerly awaited case law guidance on how to interpret some of the murkier requirements.

Unfortunately, that guidance has been slow to come and, by and large, has not yet provided direct guidance on the biggest open questions, including what exactly satisfies the consideration requirements under the law.

Below, we discuss some of the recent case law from this year under the MNAA and what steps employers should take as a result.

An Overview of the MNAA

The MNAA provides that noncompete agreements are only valid and enforceable if they meet certain requirements.

All noncompetes that fall within the scope of the MNAA, regardless of when they are entered, must:

• Be in writing and signed by both the employer and employee.
• Expressly state that the employee has the right to consult with counsel prior to signing.
• Be no broader than necessary to protect the employer’s legitimate business interests.
• Extend for no more than 12 months post-employment (except in limited circumstances).
• Be reasonable in scope of geography and proscribed activities.
• Comply with the statute’s choice of law and venue requirements.
• Be supported by “a garden leave clause or other mutually-agreed upon consideration.”

Valid noncompete agreements entered into at the time employment begins must also be provided...

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