Imagine a world where accident rates on roads are virtually eliminated due to applications and technology that provide drivers with an in-depth understanding of their surroundings within their vehicles. This futuristic development sounds improbable, but SaverOne (TASE: SVRN) is working diligently to make it a reality. The company, which has been gradually entering into partnerships with OEMs in the automobile industry, focuses on the integration of artificial intelligence and innovated sensor technologies to create a system that identifies and alerts drivers to potential distractions, and thus prevents accidents by increasing drivers’ awareness of their environment. In the U.S. alone, distracted driving was responsible for approximately 3,166 deaths in 2017 (source: National Highway Traffic Safety Administration), a staggering number that, with the help of SaverOne, could be greatly minimized.
So, what does this have to do with law? Well, in a word, employment agreements that restrict competition. Massachusetts non-compete agreements are a commonality in numerous business sectors, particularly for those companies that operate in the technology space, such as SaverOne. As technology companies grow and continue to innovate, they require brighter minds and advanced planning to maintain a competitive edge, not only in the business sphere, but in the market overall. To that end, countless investors look toward optimistic technology companies such as SaverOne to solve even the most complex issues affecting the world.
But when companies try to staff themselves with the best and brightest, they may find themselves facing greater challenges than they anticipated, such as the existence and legality of Massachusetts non-compete agreements. So, we ask, what are non compete agreements in massachusetts, and what makes them so important?
The term “non-compete” refers to an agreement that legally prohibits employees from doing the following: Non-competes have the potential of being a gray area for many in the technology industry, particularly for brands that are attempting to expand in highly-competitive sectors. One such area for SaverOne might be finding enough employment applicants that have either the experience or the skillset to create cutting-edge technology, and then keeping those hard-to-find employees from being poached by competitors.
While non-compete agreements are commonplace in the world of business, it’s important to know whether or not you’ll need one before moving your company or brand forward. Legal compliance is key, and to that end, it’s vital to ensure that both you and your employees are on the same page throughout all transactions. By implementing non-competes, you can cut down on legal disputes – especially in Massachusetts – and help your company realize its full potential.
Now that we’ve gone over the basics of non-compete agreements, we can now provide a deeper understanding of the technology being developed by SaverOne and others through the use of non-compete agreements. Without Massachusetts’ need for stringent tech regulations, for example, brands like SaverOne wouldn’t have had the opportunity to stir the pot and create innovative solutions to longstanding problems.
Perhaps even more interesting is the way that state governments have used technology to further their initiatives, especially in tech-advanced states like Massachusetts. For example, in response to the #METOO movement, Senate Bill 2645: An Act relative to sexual harassment in the workplace, as set into law on September 29, 2016, updated noncompetition regulations by limiting the scope and enforcement of non-compete clauses in Massachusetts.
Currently, non-compete agreements in Massachusetts are governed by Massachusetts General Laws Chapter 149, Section 24L (Massachusetts Non-Competition Requirements). The law strictly limits information that can be included in a non-compete agreement, and essentially provides additional protections for employees by ensuring that the non-compete agreements are “reasonable in geographically and temporally” and “provided that the employer shall notify the employee in writing upon hiring.” Furthermore, the law clarifies that “Massachusetts residents” are those who can file Massachusetts income tax returns, and that once the non-compete has expired, the employer cannot prevent the employee from working in the same field to “earn a livelihood.”
In addition, new non-compete regulations aim to make it illegal to require employees to sign non-compete agreements before starting new jobs. This is particularly important, as it essentially bars companies from prohibiting existing employees from taking new employment opportunities – and thus continuing to contribute to the state of Massachusetts technology development – while at the same time improving road safety. To that end, companies that evolve alongside technology help drive progress across the board.
For comparison, only 12 other states have such guidelines regarding non-compete agreements in place. Unsurprisingly, California is one of them. Here, non-compete agreements are basically unenforceable. This restricts companies like SaverOne from implementing non-compete agreements with their employees, though it does not prevent them from working elsewhere, and instead it forces them to rely on other contractual agreements instead.
In the long run, law and technology often work together in ways that benefit one or both parties, especially in tech-centric states like Massachusetts. To that end, opportunities abound for those who can take good ideas and run with them. However, without established legal parameters, companies like SaverOne may find themselves on shaky ground.
In addition, higher levels of legal protection allow for a greater level of safety and sense of security for employees, while simultaneously increasing the value of their employment. And at the end of the day, more employment opportunities are a good thing for everyone. This can increase technology development while also improving public safety by minimizing vehicular distractions that can lead to injury and even loss of life.
But while the future may be bright for companies in the tech industry, a firm understanding of legal frameworks for technology companies and non-compete agreements in Massachusetts is still necessary. For those who choose to dive deeper into this important topic, Massachusetts Non-Competes: Everything You Need to Know is the next logical step.
