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House Unanimously Passes Legislative Limits on Massachusetts Noncompetes and Passes Massachusetts Uniform Trade Secrets Act and, in Doing so, Introduces Paid Garden Leave

By Bronwyn L. Roberts

On June 29, 2016, just four months after Massachusetts House Speaker Robert A. DeLeo promised to put new legislative limits on noncompetition agreements, the House unanimously passed a bill (150-0) doing just that and also passed the Massachusetts Uniform Trade Secrets Act. To become law, the bill (House Bill 4434) still needs to pass the Senate and be signed by Governor Charlie Baker.

While much of the bill would merely codify some of the key issues judges already look at when analyzing whether an agreement is enforceable under Massachusetts law, there are some provisions that represent a sea change in the noncompete landscape.

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