signed an NCA in massachusetts at my current job (fintech, 4 years tenure). 2-year non-compete with "any directly competing business." got an offer from a different fintech, similar product but different segment (consumer vs. SMB). MA cap is 1 year by statute now i think but my contract says 2.
does the MA NCA Act override my contract? do they have to keep paying me garden leave? can i just take the new job?
MA NCA Act caps non-competes at 12 months. anything longer in your contract is unenforceable as written. employer must also provide garden leave (50% of base salary during the restriction) OR "other mutually-agreed consideration" — most don't bother and the NCA is unenforceable on that ground alone.
direct competition definition matters too. consumer fintech vs SMB fintech is often "non-competing" enough for the NCA to fail, especially without specific customer overlap.
also FYI — the FTC's 2024 non-compete ban got struck down by the Texas court in 2024 but state-level reform continues. MA is one of the strongest pro-employee states post-NCA Act.
The Massachusetts Non-Competition Agreement Act (G.L. c. 149, § 24L) has clear requirements: (1) max 12 months duration, (2) must be in writing and signed at offer or 10 days before start, (3) must include garden leave OR mutually-agreed consideration, (4) must be reasonable in geographic scope and product line, (5) cannot apply to terminated-without-cause employees who are non-exempt.
Employers regularly include 2-year non-competes that are facially invalid under the Act. The right move is usually to consult with a MA employment lawyer to draft a clean letter to your current employer notifying them of departure and the basis for your view that the NCA is unenforceable. Informational only.