On Thursday, October 25, 2018, at 3:30 p.m. Eastern, Seyfarth Partner Dawn Mertineit will be a panelist for Boston Bar Association’s first ever Employment Law Conference. The “Non-Compete Agreements—What You Need to Know About the New Law” presentation is focused on the recently passed Massachusetts non-compete law and how it’s been affecting businesses with Massachusetts employees.

For more information or to register, click here.

Readers of our blog will recall that this summer, the Massachusetts legislature passed a non-compete reform bill after nearly a decade of fruitless attempts.  The new law goes into effect today, meaning that any agreements signed today or in the future will need to comply with the new law.

As a brief recap, the key provisions of the new bill are as follows: Continue Reading Today’s the Day: Massachusetts’ New Non-Compete Law Goes into Effect

What Businesses Need to Know About Non-Compete and Trade Secrets Law

Seyfarth’s Trade Secrets, Computer Fraud, and Non-Competes Practice Group is pleased to provide the 2018-2019 edition of our one-stop 50 State Desktop Reference, which surveys the most-asked questions related to the use of restrictive covenants and intellectual capital protection in all 50 states, including the recent non-compete legislation passed in Massachusetts this August. For the company executive, in-house counsel, or HR professional, we hope this guide will provide a starting point to answer your questions about protecting your company’s most valuable and confidential assets.

To request a hard copy or a pdf of the 2018-2019 edition of the 50 State Desktop Reference, click the button below.

In Seyfarth’s fifth installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Kate Perrelli, Erik Weibust, and Dawn Mertineit focused on Massachusetts non-compete and trade secrets reform. At long last, Massachusetts Governor Charlie Baker signed a Non-Compete Reform Bill into law on August 10. The presenters focused on what businesses should understand about the impacts of the changes, what to expect next, and how to safeguard assets and maintain an advantage over competitors.

As a conclusion to this well-received webinar, we compiled a summary of takeaways:

  • Non-competes must be limited to one year, but can be extended to two if the employee breaches his or her fiduciary duty or steals company property.
  • Must be in writing and signed by both parties; at least 10 days’ notice must be provided to employees/candidates; and the right to counsel must be explicit in the agreement.
  • Garden leave is not required.  “Other mutually agreed-upon consideration” is adequate.  But what that means, and whether the court will even assess the adequacy of consideration, is left to the courts to determine.
  • Continued employment is no longer sufficient consideration.  Something more, that is “fair and reasonable” must be provided.  Again, what that means is left to the courts to determine.
  • Choice of law and venue requirements are likely unenforceable in other states and in federal court.  Nevertheless, comply with the law in case an employee files a declaratory judgment action in Massachusetts.
  • Bottom line:  Be clear in your agreements.  All the law really does is establish what must, may, and may not be included in private agreements.

Please join us for a one-hour CLE webinar on Thursday, August 16, 2018, at 1:00 p.m. Eastern / 12:00 p.m. Central / 10:00 a.m. Pacific.

On August 10, Governor Charlie Baker signed a Non-Compete Reform Bill into law. Although the bill largely codifies existing common law, there are some significant changes that companies with employees is Massachusetts should be aware of. Among other things, non-competes may not be enforced against certain types of employees; continued employment will no longer be sufficient consideration for existing employees; any employees subject to non-compete restrictions must be provided with “garden leave” (i.e., 50% of their base pay) during the restricted period, or “other mutually agreed upon consideration” (which is not defined); there are new notification requirements, and agreements with Massachusetts employees purportedly may not apply the laws of other states or mandate venue for lawsuits outside of Massachusetts.

As part of the same overarching economic development bill, Massachusetts has also now joined 48 other states in adopting the Uniform Trade Secrets Act, which will also changes existing law (although without creating nearly as much confusion and uncertainty as the non-compete law).

Understanding the impact of these changes, and what to expect, will help your company safeguard its most valuable assets and maintain its advantage over competitors.  Please join Seyfarth Shaw’s Boston team for an informative webinar on what to expect when this law goes into effect on October 1, 2018.

Late last night, after close to a decade of “will they or won’t they” nail biters, the Massachusetts legislature finally passed a non-compete bill, just minutes before the end of the 2018 legislative session. (For a recap of the many twists and turns over the years, here is just a smattering of blog posts on the topic).

The new bill, which will become effective on October 1, 2018, if signed by Governor Baker, codifies certain aspects of existing common law, but makes some significant changes to non-compete jurisprudence in the Bay State that employers will need to be mindful of. Continue Reading At Long Last, Non-Compete Legislation: Massachusetts Finally Passes Non-Compete Bill After Nearly a Decade

Marc McGovern, the mayor of Cambridge, Massachusetts (home to many of the Commonwealth’s established and emerging pharmaceutical, biotech, and other life sciences companies), published an op-ed in today’s Boston Globe regarding the noncompete reform movement in Massachusetts (about which we have previously reported).  Unsurprisingly, given that Cambridge has been referred to as the “People’s Republic of Cambridge,” Mayor McGovern comes out strongly in favor of severe restrictions on the use of employee noncompete agreements, stating, among other things, that “noncompetes are unfair to employees.”   Among other things, Mayor McGovern proposes that noncompete agreements be banned outright, or at least severely limited; and if the latter, that employers be required to pay 100% of the employee’s salary during the restricted period (known as “garden leave” pay).  In his words: Continue Reading Mayor of the “People’s Republic of Cambridge” Steps Into The Massachusetts Noncompete Reform Fray

As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Jeremy Morton, Partner at Harbottle & Lewis LLP, London, UK.

For the first time ever, we have UK-wide legislation that concerns the protection of confidential information. Modifying its approach in light of a recent consultation exercise, the UK government introduced The Trade Secrets (Enforcement, etc.) Regulations 2018 on June 9, to implement the EU Trade Secrets Directive 2016/943. Continue Reading UK Adopts New Trade Secrets Legislation

Democratic U.S. Senators Elizabeth Warren (D-MA), Chris Murphy (D-Conn.), and Ron Wyden (D-Ore.) introduced legislation on April 26, 2018, entitled the Workforce Mobility Act (“WMA”). Although the text of the WMA is not yet available, according to various press releases, it would prohibit the use of covenants not to compete nationwide. In Senator Warren’s press release announcing her co-sponsorship of the bill, Senator Warren stated that “[t]hese clauses reduce worker bargaining power, stifle competition and innovation, and hurt Americans striving for better opportunities. I’m glad to join Senator Murphy to put an end to these anti-worker, anti-market agreements.”  Continue Reading Democratic U.S. Senators Seek to Abolish Non-Compete Agreements

For the third year in a row, the Washington state legislature failed to pass non-compete legislation, declining to take action on two separate bills that would have severely restricted employers’ ability to enforce former employees’ non-competition agreements. Continue Reading Washington State’s Legislature Rains on Non-Compete Critics’ Parade Yet Again