Non Compete Violation Massachusetts
Good business relationships are essential to any company. At almost every company, the employer and employee form a bond through an employment contract. Included in this employment contract are the job description, term length, expected amount of salary, benefits, and limitations.
This document also helps employers inform their employees of the consequences of violations so that they do their duties written in the contract. Violating the terms and agreements in the document is a critical matter for both parties.
In some contracts in MA, a noncompete clause is included. This means that some employees could breach their contract by applying for a job at a competing company. If you are having doubts about whether your previous employee has violated his or her contract in MA, Driscoll Investigations can help. We can document your ex-employees’ activities, which can help you in a court case.
What Is a Massachusetts Noncompete Agreement?
A Massachusetts noncompete clause or agreement is a signed arrangement between an employer and employee. It states that the employee should not work with a competing company or start a similar business for a specific period. Learn more about the non-compete clause here.
Implementing This Law
The new law about Massachusetts noncompete contracts was implemented on October 1, 2018. The Massachusetts noncompete law involves a new approach to the implementation of noncompete agreements.
This new statute states that the Massachusetts noncompete contract must be given at least 10 days prior to the effective date. It should also be in agreement that the ex-employee can consult an attorney.
If the employer does not comply with the requirements, the Massachusetts noncompete agreement will not be acknowledged in court. These important requirements for the Massachusetts noncompete agreement involve:
- The Duration of the Massachusetts Noncompete Agreement
The Massachusetts noncompete agreements should not last more than one year. A noncompete contract that lasts longer will not be enforceable. For example, an employer asking an ex-employee to refrain from competing or working for another company for the rest of his or her life will not be acknowledged by the court.
- The Location Where the Massachusetts Noncompete Agreement Took Effect
The location where the Massachusetts noncompete contract was signed and where it is effective should be stated in the agreement. Keeping an employee from working for companies around the neighborhood of the employer is reasonable, but covering a larger area might not be considered by the law.
- The Business Involved in the Massachusetts Noncompete Contract
The agreement should involve the same business trade of the employer. The Massachusetts noncompete contract may also include limitations regarding intellectual property, customer lists, and other confidential information of the company.
- The Considerations Given to the Employee Involved in the Massachusetts Noncompete Agreement
The employee may not be able to work after leaving the company. To be fair, the Massachusetts noncompete law requires employers to pay for the time the employee will not be able to practice his or her profession. The former employee will receive a certain percent of his or her previous salary while the Massachusetts noncompete agreement is in effect. The amount may differ depending on the agreement of both parties.
- The Signature of Both Parties
There are employers who forget to sign their own Massachusetts noncompete contract. Without the signature of both parties, the agreement is invalid.
For the court to acknowledge a Massachusetts noncompete contract, all of the important information above should be in your agreement. It is a bit expensive to have a Massachusetts noncompete contract for all of your employees, so just make sure that the ones who know your trade secrets sign a Massachusetts noncompete agreement.
Individuals Exempted From Non Compete Violation Massachusetts
Massachusetts noncompete agreements are not applicable to a few individuals. The people who are not allowed to sign noncompete agreements are:
- Individuals Under 18 Years of Age
- Part-Time, Hourly, or Nonmanagement Employees
- Interns and Undergraduate Students Working Short-Time
- Laid Off Employees
- Employees Terminated Without Cause
Massachusetts noncompete agreements implemented or signed on or after October 1, 2018 that involve these parties will not be effective. Older Massachusetts noncompete agreements will not be void, but they should be reasonable and fair.
Possible Results of a Non Compete Violation in Massachusetts
If a Massachusetts noncompete contract is violated, there are potential losses that an employee might incur. These include:
- Monetary Damages
The losing party may be asked to pay for the court and attorney fees. There are also other monetary damages, such as compensatory, punitive, and liquidated damages.
The monetary damages will be assessed in court. If the amount of money stated in the Massachusetts noncompete contract is reasonable, then the court will likely consider it.
- Injunctive Relief
A common result of the violation of Massachusetts noncompete agreements is an injunction. If the employer wins the case, then the employee should leave his or her new employer or business.
The possibility of proving Massachusetts noncompete violations is stronger with proof. If there is evidence that your employee is working at another company or building his or her own, you can prove the Massachusetts noncompete violation.
History of Non Compete Violation Massachusetts
Beginning with the Dyer’s Case back in 1414, English customary law decided not to implement non-compete understandings as a result of their temperament as limitations on exchange. That boycott stayed unaltered until 1621, when a limitation that was constrained to a particular geographic area was seen as an enforceable special case to the beforehand supreme principle.
Right around a hundred years after the fact, the exemption turned into the standard with the 1711 watershed instance of Mitchel v Reynolds which set up the cutting edge structure for the investigation of the enforceability of non-contend understandings.
Who Non Compete Applies to?
For a worker who has the commitment to secure the business’ classification and prized formulas, the business and the representative may concur on the incorporation of non-rivalry provisos in the business contract or a different non-revelation understanding. If the work contract has been fired or has terminated, during the concurred non-rivalry period, the business will pay remuneration to the representative on a month to month premise. On the off chance that the representative ruptures the non-rivalry understanding, he/she will pay harms to the business as concurred.
The work force subject to non-rivalry understanding will be restricted to the business’ senior administration, senior experts and other staff with a classification commitment. The extension, zone and term of the non-rivalry understanding will be concurred by both the business and the worker, and such understanding must not abuse the laws and guidelines.
Rights and Commitments Under the Non Compete Clause
Upon end or termination of the work contract, the term of non-rivalry for any of the people as referenced in the previous proviso to work in some other boss delivering or taking part in results of a similar classification or participating in business of a similar classification as this business will not surpass two years.
In the event that the gatherings have agreed on non-rivalry and remuneration, except if another understanding is set up, the business is qualified for request that the worker conform to the non-rivalry commitments when the business contract is finished, and the People’s Court will bolster this solicitation. The worker, subsequent to consenting to the non-rivalry commitments, is qualified for demand the concurred pay from the business, and the People’s Court will bolster this solicitation.
On the off chance that during the time of non-rivalry, the business requests to end the non-rivalry understanding, the People’s Court will bolster said appeal. While firing the non-rivalry understanding, if the worker demands the business to pay an additional 3-month non-rivalry remuneration, the People’s Court will bolster said demand.
Pay for Non Compete
When the non-rivalry commitment has been concurred, however the pay for the length after the end or lapse of the business contract has not been resolved, if the worker has played out the non-rivalry commitments, and solicitations the month to month pay which is equivalent to 30% of his/her normal month to month compensation of the a year past to the end or termination of the work contract, the People’s Court will bolster said demand.
In the event that the 30% normal month to month compensation of the a year past to the end or lapse of the business contract as referenced in the former proviso is lower than the lowest pay permitted by law of the district where the work contract is played out, the business will pay as per the lowest pay permitted by law.
Result of Violating Non Compete Agreement
At the point when a worker disregards this Law to fire the business contract, or abuses the stipulations of the business contract about the classification commitment or non-rivalry and any misfortune is caused to the business, the representative will be at risk for harm pay.
In the event that a business and a worker have settled upon both a non-rivalry understanding and pay in the business agreement or privacy understanding, and if after the end or lapse of the work contract, the business has not paid said pay for a quarter of its very own year because reasons and the representative solicitations end of the non-rivalry understanding, the People’s Court will bolster such ask for.
After a representative abuses the non-rivalry understanding and pays sold harms to the business, if the business demands the worker to keep on performing non-rivalry commitments as concurred, the People’s Court will bolster such ask for.
Why Hire an Investigator When Dealing with A Non Compete Violation Massachusetts?
If you think your former employee has violated your Massachusetts noncompete agreement, it is imperative to check if your hunches are correct. Investigators are skilled and well experienced in checking people’s whereabouts and activities. Here are some of the reasons why you should hire an investigator:
- He or She Can Find and Check Related Documents
We can review the Massachusetts noncompete agreement and see if it is applicable for litigation. Checking business policies and signed documents related to Massachusetts noncompete contracts is also one of the things we are good at. After assessing the papers and the enforceability of the Massachusetts noncompete agreement, we can tell you the actions you can take.
We can look for the documents to prove that your previous employee has violated the Massachusetts noncompete contract. If your ex-employee signed contracts from a competing company, we could look into his or her document history.
- He or She Can Investigate Employees’ Activities
You can rely on us to determine if your former employee has shared a confidential file with your competitors. We can check the electronic devices that your former employees used at your company for Massachusetts noncompete violations. It is better not to delete or move any file on their previous work computer for us to be able to track their activity.
- He or She Can Advise a Possible Action
Before you seek the advice of a lawyer, you can plan based on the facts we compiled. You can choose to send a cease and desist letter to the employee to prevent him or her from violating the Massachusetts noncompete contract. This letter contains an account of how the employee violated the agreement and a demand from the company for him or her not to make any more violations.
Depend on Our Investigator for Non Compete Violation Massachusetts
Are you looking for an investigator to help you detect a Massachusetts noncompete violation? Driscoll Investigations can dig up facts for you. We will check if your former employees have violated your Massachusetts noncompete agreement. If we find out that they have violated your Massachusetts noncompete contract, we will find all of the related documents and track their activities. We discover the truth and offer facts to our clients. Click here to view our blog.
Driscoll Investigations is a full-service investigation company. You can be sure that our team will keep you informed about the progress of the Massachusetts noncompete investigation. Also, you can trust us to work on each case with the utmost professionalism and confidentiality. We tailor our services based on your needs and budget.
Our highly trained investigator is available 24/7 in MA. Driscoll Investigations will go above and beyond to help you with your case. Contact us today. We look forward to hearing from you.