In today's job market, companies need every advantage they can get when it comes to hiring and retention of workers. Requiring new hires to sign restrictive covenants like noncompete agreements could be off-putting to some of the best talent in a limited pool.
If your organization uses non-compete clauses or agreements, you may have assumed that its best to draft them as broadly as possible in order to cover all situations. Unfortunately, many courts are increasingly scrutinizing these agreements and may find them unenforceable if they limit employees' employment prospects too much.
The state of Massachusetts has just passed a bill that would require companies to provide compensation to former employees if they decide to enforce noncompete agreements. The compensation -- either half the employee's salary or "mutually agreed-upon consideration" -- would be required for up to a year after the employee leaves the company.