Massachusetts Governor Supports Elimination of Noncompetition Agreements

Author: Melissa A. Silver, XpertHR Legal Editor

September 25, 2013

In pursuit of economic development, innovation and entrepreneurship, Massachusetts Governor Deval Patrick's administration has declared its support for the elimination of noncompete agreements and the adoption of the Uniform Trade Secrets Act (UTSA) in the state. The administration's position was recently announced by Gregory Bialecki, the Massachusetts Secretory of Housing and Economic Development, in his testimony before the Massachusetts Joint Committee on Labor and Workforce Development.

In particular, Bialecki affirmed that "the Patrick [a]dministration now supports such outright elimination, combined with adoption of the Uniform Trade Secrets Act, which has been demonstrated in other states to protect the loss or disclosure of proprietary information by departing employees." In support of this position, Bialecki argued that the elimination of noncompete agreements would be beneficial to the economy in Massachusetts because it will:

  • Help retain talented entrepreneurs;
  • Support individual career growth and flexibility; and
  • Encourage new innovative businesses.

Instead of using noncompete agreements, Bialecki testified that the adoption of the UTSA is the tool employers could use to protect their confidential and proprietary information. The UTSA provides employers with remedies for the misappropriation (acquiring by improper means) of their trade secrets and proprietary information. To that end, the Patrick administration supports the adoption of the UTSA, which has been adopted in 47 other states and the District of Columbia, with Texas being the latest state to adopt a version of the law. The Massachusetts Making Uniform the Law Regarding Trade Secrets bill would:

  • Protect against the intentional and illegal misuse of a trade secret if the trade secret had actual or potential economic value by not being accessible to the public;
  • Allow courts to provide money and/or injunctive relief to employers whose trade secrets are misappropriated and remedies that are not currently available; and
  • Allow courts to award attorney fees under certain circumstances.

If passed, this bill would become effective on July 1, 2014.