Are employers allowed to require employees to sign a non-compete agreement?

In Massachusetts, employers are allowed to require employees to sign a non-compete agreement, however, these agreements must meet certain legal criteria in order to be legally enforceable. The law requires employers to provide a reasonable and legitimate business interest that is being protected by the non-compete agreement. This business interest must be something unique to the employer, and it must be valid and not just to prevent competition. The scope of the agreement must also be reasonable in terms of the activity it restricts, its geographic range, and the duration of restrictions. Additionally, non-compete agreements must be necessary in order to protect the business interest of the employer. If an employer only has a vague interest in preventing competition, then the agreement is not necessary and therefore not enforceable. The agreement must also not cause financial hardship to the employee. Lastly, if an employee is terminated without cause, the employer must still pay the employee any wages owed to them, regardless of the employee’s decision to sign a non-compete agreement. If an employer in Massachusetts requires an employee to sign a non-compete agreement, it is important for them to make sure the agreement meets the legal criteria and is enforceable. It is also important for the employee to understand what they are agreeing to before they sign.

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Are employers allowed to require employees to sign a non-compete agreement?

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