Trends With Non-Compete Agreements

The courts in Massachusetts are becoming more restrictive in the enforcement of non-compete agreements. With regards to employees involved in sales, the courts tend to direct the sales person not to pursue past clients of the employer, but will permit the employee to work for a competitor. The Federal District Court recently ruled that it would not enforce a non-compete because the past employer could not show that the new employer was a direct competitor, despite the fact that the products sold were similar. Thus, the Court looked close at what services and goods were provided by each company and whether those products and services were directly competitive in determining whether or not to grant a preliminary injunction.