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Non-compete agreements are only enforceable in Massachusetts if they are (i) reasonable in time; (ii) reasonable in scope; and (iii) are for a legitimate business purpose. A legitimate business purpose is to protect confidential information, trade secrets and goodwill. A non-compete agreement is not enforceable if it is simply intended to keep an employee from working for a competitor - there must a legitimate business reason supporting the enforcement of the agreement. Moreover, an employee cannot be precluded from using his or her own goodwill by way of such agreements. Nor may an employer consider the providing of training as a legitimate basis for the enforcement of a non-compete agreement.
The determination of the enforceability and scope of a non-compete agreement involves both a factual and legal analysis. Although Massachusetts does enforce non-compete agreements, they are disfavored in the law and there are a number of circumstances under which such agreements are not enforced.
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