Nearly one fifth of the nation’s work force are subject to mobility-restricting noncompete agreements, however, several states are now looking to free workers from these agreements.

On June 29, 2016, the Massachusetts House of Representatives voted unanimously 150-0 to pass a bill on noncompete reform. The bill would require companies to explain noncompete agreements clearly and limit them to 12 months. It would also prohibit noncompetes for certain categories of employees including hourly workers, summer interns, college students and employees under 18. Most notably, it would require companies to pay former employees 50 percent of their salary for the duration of the noncompete’s enforcement period, unless another mutually-agreed upon consideration is reached.

Other states have also taken steps to restrict noncompete agreements. Oregon and Utah have limited the duration of noncompete clauses, while Hawaii and New Mexico recently banned noncompete agreements for technology and health care workers, respectively. At the federal level, the Treasury Department issued a report this year criticizing the excessive use of noncompetes and the White House published a report in May which concluded that noncompetes “impose substantial costs on workers, consumers and the economy more generally.” Limiting non-compete arrangements at the state and federal level will give workers more freedom and companies less control, promoting entrepreneurship and economic growth.

Read more at: http://bostinno.streetwise.co/2016/06/29/mass-house-of-representatives-v…