Massachusetts non-compete agreements: what is enforceable

Key takeaways

• The Massachusetts Noncompetition Agreement Act, M.G.L. c. 149, s. 24L, applies to employee non-compete agreements entered into on or after October 1, 2018.
• A Massachusetts non-compete cannot restrict a former employee for more than 12 months, or 2 years if the employee breached a fiduciary duty or unlawfully took the employer’s property.
• Section 24L makes a non-compete unenforceable against employees who are nonexempt under the federal Fair Labor Standards Act, student interns, employees age 18 or younger, and employees who were laid off or terminated without cause.
• A garden leave clause under Section 24L pays at least 50 percent of the employee’s highest annualized base salary from the prior 2 years for the whole restricted period.
• The Federal Trade Commission says its Noncompete Rule is not in effect and is not enforceable, so state law controls non-competes in Massachusetts as of November 13, 2026.

If you own or manage a small business in Boston or anywhere else in Massachusetts and you want employees to sign a non-compete, the short answer is that the agreement is enforceable only if it meets every requirement of one state statute. A non-compete agreement is a contract in which an employee agrees not to engage in certain activities that compete with the employer after the job ends. The statute is the Massachusetts Noncompetition Agreement Act, Section 24L of Chapter 149 of the General Laws. Section 24L is state law, so the same rules apply in every city and town.

This guide covers what Section 24L requires, how long a restriction can last, what garden leave is, which workers and which agreements fall outside the law, where disputes are heard, and where the federal rule stands.

What is a non-compete agreement under Massachusetts law?

A non-compete agreement under Massachusetts law is an agreement between an employer and an employee, or one arising out of an existing or expected employment relationship, in which the employee agrees not to engage in specified competitive activities after the employment ends. That definition comes from M.G.L. c. 149, s. 24L, the Massachusetts Noncompetition Agreement Act.

Section 24L counts independent contractors as employees for this purpose.

The Act applies to agreements entered into on or after October 1, 2018, according to Section 71 of Chapter 228 of the Acts of 2018. Older agreements fall outside the Act and are judged under Massachusetts court decisions instead.

What makes a non-compete enforceable in Massachusetts?

A non-compete is enforceable in Massachusetts only if it meets all eight minimum requirements in Section 24L(b). For an agreement signed at the start of a job, the statute requires the following.

1. The agreement is in writing and signed by both the employer and the employee.
2. The agreement states that the employee has the right to consult with counsel before signing.
3. The employer gives the agreement to the employee by the earlier of the formal offer of employment or 10 business days before the first day of work.
4. The restriction is no broader than necessary to protect the employer’s trade secrets, other confidential information, or goodwill.
5. The restricted period is no longer than 12 months from the date employment ends, with one exception described below.
6. The geographic reach is reasonable in relation to the interests protected.
7. The scope of the prohibited activities is reasonable in relation to the interests protected.
8. The agreement is supported by a garden leave clause or other mutually agreed consideration that is specified in the agreement, and the agreement is consonant with public policy.

Section 24L treats two limits as presumptively reasonable. One is a geographic reach limited to the areas where the employee provided services or had a material presence or influence during the last 2 years of employment. The other is a restriction limited to the specific types of services the employee provided during those 2 years.

How long can a non-compete last in Massachusetts?

A non-compete in Massachusetts can last no more than 12 months from the date employment ends. Section 24L(b)(iv) allows a longer restricted period, up to 2 years, in two cases: the employee breached a fiduciary duty to the employer, or the employee unlawfully took property belonging to the employer, physically or electronically.

Restricted period is the statute’s term for the time after employment ends during which the non-compete limits the employee. Section 24L does not require garden leave payments during an extension past 12 months.

What is garden leave in Massachusetts?

Garden leave in Massachusetts is a clause in a non-compete in which the employer agrees to pay the employee during the restricted period. To qualify under Section 24L(b)(vii), the clause has to meet two conditions:

• Payment, on a pro-rata basis for the entire restricted period, of at least 50 percent of the employee’s highest annualized base salary paid by the employer within the 2 years before termination. The payments follow the wage payment rules of M.G.L. c. 149, s. 148.
• No right for the employer to stop or refuse the payments on its own, except when the employee breaches.

Garden leave is one of two options. Section 24L also accepts “other mutually-agreed upon consideration” between employer and employee, as long as the agreement specifies it. The statute does not set a dollar amount or a formula for that other consideration. Ask an employment lawyer how courts have treated that option before you rely on it.

Which workers are exempt from non-competes in Massachusetts?

Four types of workers are exempt from non-competes in Massachusetts under Section 24L(c), which says an agreement “shall not be enforceable” against them:

• Employees classified as nonexempt under the Fair Labor Standards Act (FLSA), the federal wage and overtime law.
• Undergraduate or graduate students in an internship or other short-term job, paid or unpaid, while enrolled full time or part time.
• Employees who have been terminated without cause or laid off.
• Employees age 18 or younger.

The U.S. Department of Labor explains the exemption tests in Fact Sheet #17A, which lists a salary of not less than $684 per week as one test (the sheet is marked revised September 2019). Exempt status also depends on job duties.

Separate Massachusetts statutes void post-employment practice restrictions for certain professions. The Trial Court Law Libraries’ page on Massachusetts law about noncompetition agreements lists them:

Who is covered	Statute or rule
Physicians	M.G.L. c. 112, s. 12X
Nurses	M.G.L. c. 112, s. 74D
Psychologists	M.G.L. c. 112, s. 129B
Social workers	M.G.L. c. 112, s. 135C
Broadcasting industry employees	M.G.L. c. 149, s. 186
Lawyers	Massachusetts Rules of Professional Conduct, Rule 5.6

Which agreements does the Massachusetts non-compete law not cover?

The Massachusetts non-compete law does not cover ten kinds of agreements that Section 24L(a) excludes from its definition. The ones a small employer is most likely to use are these:

• Covenants not to solicit or hire the employer’s employees.
• Covenants not to solicit or do business with the employer’s customers, clients or vendors.
• Nondisclosure or confidentiality agreements.
• Invention assignment agreements.
• Non-competes made in the sale of a business, when the restricted person is a significant owner, member or partner who receives significant consideration from the sale.
• Non-competes made in connection with a separation from employment, if the employee is expressly given seven business days to rescind acceptance.

Excluded does not mean automatically enforceable. Those agreements are judged under Massachusetts court decisions, which the Trial Court Law Libraries summarize as requiring a restriction to be necessary to protect the employer, reasonably limited in time and space, and consistent with the public interest.

Can you ask a current employee to sign a non-compete in Massachusetts?

You can ask a current employee to sign a non-compete in Massachusetts, but continued employment alone does not support it. Section 24L(b)(ii) requires “fair and reasonable consideration independent from the continuation of employment” for an agreement entered into after the job has started.

The employer also has to give notice of the agreement at least 10 business days before it takes effect. The agreement has to be in writing, signed by both sides, and state the employee’s right to consult with counsel before signing.

Where are Massachusetts non-compete disputes heard?

Massachusetts non-compete disputes under Section 24L are heard in the county where the employee lives. Section 24L(f) allows one alternative: if employer and employee both agree, the case can be brought in Suffolk County, where the Superior Court or its Business Litigation Session has exclusive jurisdiction.

A contract clause choosing another state’s law does not get around the Act. Under Section 24L(e), a choice of law provision that would avoid the statute’s requirements is unenforceable if the employee lived or worked in Massachusetts for at least 30 days immediately before the employment ended.

Section 24L(d) lets a court reform or revise a non-compete so it is valid to the extent needed to protect the employer’s legitimate business interests.

Does the FTC non-compete rule apply in Massachusetts?

The FTC non-compete rule does not apply in Massachusetts or anywhere else. The Federal Trade Commission’s Noncompete Rule page states that the rule “is not in effect and it is not enforceable.” A federal district court stopped the FTC from enforcing the rule on August 20, 2024.

On September 5, 2025, the FTC announced that it voted 3-1 to dismiss its appeals and accede to the vacatur of the rule. The FTC’s page also lists a Federal Register notice dated February 12, 2026 on removal of the rule to conform to federal court decisions.

What should you recheck before you act?

All items below were checked on November 13, 2026. Confirm each one at the source named before you draft or sign an agreement.

• The text of M.G.L. c. 149, s. 24L, including the 12-month limit, the 10-business-day notice periods and the 50 percent garden leave figure: read the current section on malegislature.gov, since the Legislature can amend it.
• FLSA exempt status and the $684 weekly salary figure: the U.S. Department of Labor’s Fact Sheet #17A is dated September 2019, so confirm the current salary level with the Wage and Hour Division.
• The profession-specific bans and recent court decisions: the Trial Court Law Libraries page on mass.gov was last updated September 10, 2026.
• The status of the federal Noncompete Rule: check the FTC’s Noncompete Rule page on ftc.gov.

This guide is general information, not legal or tax advice. Rules and fees change; confirm the current requirements with the agency named before you file or pay.

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