Non-Compete Clause in Massachusetts
Massachusetts permits non-competes only when they meet the Massachusetts Noncompetition Agreement Act (M.G.L. c. 149, § 24L). The agreement must be signed before employment or supported by fair and reasonable consideration mid-employment, limited to one year, and the employer must pay "garden leave" of at least 50% of the employee's highest annual salary during the restricted period (or other mutually-agreed consideration).
Last reviewed against current law: 2026-05-14
How Massachusetts law treats non-compete clause
The Massachusetts Noncompetition Agreement Act (MNAA), effective October 1, 2018, sets strict procedural and substantive requirements. The agreement must be in writing, expressly state that the employee has the right to consult counsel, be signed by both parties, and — if signed at the start of employment — be provided at the earlier of a formal offer or ten business days before the start date.
The defining feature is the garden-leave requirement: during the restricted period, the employer must pay the employee at least 50% of their highest annualized base salary over the prior two years, or substitute another form of mutually-agreed consideration of equivalent value. This effectively prices non-competes out of all but the most strategically critical roles.
Non-competes against non-exempt employees, undergraduates, paid interns, employees under 18, and employees terminated without cause are categorically void under the MNAA.
Primary sources
Frequently asked questions — Massachusetts
How long can a Massachusetts non-compete last?▾
Twelve months from the end of employment is the cap under § 24L, with one narrow exception extending up to two years if the employee breached a fiduciary duty or unlawfully took employer property.
What is garden leave?▾
Under § 24L, the employer must pay at least 50% of the employee's highest annualized base salary from the prior two years during the restricted period, unless both parties agree in writing to substitute other mutually-agreed consideration.
Are non-competes void against laid-off workers?▾
Yes. A non-compete is unenforceable under the MNAA if the employee was terminated without cause or laid off.