What are covenants not to compete?
Covenants not to compete are contractual agreements between employees and employers whereby the employee promises not to compete with the employer for a specific period of time and/or within a particular geographic area should the employment relationship terminate. Generally, Massachusetts courts have enforced such covenants where necessary to protect trade secrets, confidential data, or the employer s good will. In doing so, the courts balance the reasonable needs of the former employer against concern for the right of the employee to earn a living. They also take into consideration the public s interest in not enforcing these agreements if they interfere with ordinary, healthy competition.