Legal expert urges caution on sweeping noncompete ban, citing startups and life sciences
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Summary
A lawyer who helped draft Massachusetts’ noncompetition reform told the committee that while the statute isn’t perfect, an outright ban (S1336) could harm startups and the life-sciences industry; he offered to assist with careful drafting on H2118.
Russell Beck, a trade secret and employee mobility lawyer who worked on Massachusetts’ noncompetition reform, told the Joint Committee on Labor and Workforce Development that wholesale repeal of noncompete agreements would pose risks to start-ups and the Massachusetts life-sciences industry.
Beck told the committee he helped draft the Massachusetts Noncompetition Agreement Act and said the legislature produced "a truly thoughtful and nuanced overhaul" that balances competing interests. Addressing Senate Bill S1336 (a proposed ban) and House Bill H2118 (which would change what constitutes adequate consideration such as garden leave), he cautioned that the empirical literature on noncompetes offers mixed results and that some studies rely on limited data. "Our life science industry in Massachusetts is flourishing under the current law, and the elimination of noncompete would cause tremendous havoc," he said.
Beck urged careful drafting and offered his assistance to the committee to craft targeted changes rather than an outright ban. No formal vote on noncompete bills was taken at the Nov. 17 hearing.