By: Elizabeth Lopez

A local lawmaker in Belmont, Massachusetts is hoping to tighten the rules on so-called non-compete agreements through legislation, which it’s supporters say “too often hamstring workers’ ability to find new jobs”. State Rep. Will Brownsberger, filed legislation earlier this year that would not only restrict employers’ ability to write “broad” non compete agreements but also require employers’ to present a written version of the agreement to the employee prior to their first day of work.

State Rep. Brownsberger said such agreements are intended to allow employers to protect trade secrets and confidential information. But he said the agreements are often written so broadly that they force former employees out of their chosen field to avoid leaving themselves vulnerable to legal action from their old employers. The new legislation would add new requirements to the law regarding the agreements, which are often a prerequisite to employment. The bill would also ban such agreements for employees earning less than $75,000 per year. The Legislature’s Committee on Labor and Workforce Development heard testimony on the bill on Oct. 7.

Brownsberger said he first decided to pursue the legislation after hearing from Caroline Huang, a Belmont resident, about her experience with a non compete agreement in the early 1990s. Huang said she signed the agreement in the early 1990s when she took a job writing speech synthesizing software. When she left the job a few years later hoping to continue working in speech technology, she said the agreement was so broad that it barred her from taking any other job in that field for the next year.

She was able to find another job, writing text recognition software, but said the experience set her back financially and hurt the momentum of her career.

“It wasn’t a disaster for me, but I was in a lucky situation,” said Huang, adding that her husband’s job helped fill the financial gap. “It could have easily been terrible for someone else.” Huang said she doesn’t blame her former employer because the agreement was completely legal. But she believes it would be best for workers if the agreements were banned altogether, though she’s willing to live with a compromise like the one Brownsberger is proposing.

Non compete agreements are known for what they contain–restrictive covenants. Because restrictive covenants can be tailored narrowly or broadly, it is how they are drafted that matters. If contested in court, it is the scope of the restriction that will be scrutinized. Broadly worded non compete agreements may be viewed by some courts as too restrictive, giving former employees’ little leeway when it comes to using reasonable amounts of general knowledge gained on the job in future positions with other employers. Courts also may frown on wording they see as vague, which could provide employees too little guidance as to what limitations are being placed upon them.

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