Governor Maura Healey proposes new economic development legislation for Massachusetts, “Mass Winning Global Investment, Talent, and Innovation Act.” The new legislation is designed to strengthen the Commonwealth’s competitiveness. The act seeks to attract investment, support workforce development, and encourage business growth, aiming to position Massachusetts as a leader in emerging industries. The proposed bill includes approximately $305 million in capital authorizations.

Much of the public discussion surrounding the Mass Wins Act has focused on the broader economic development initiatives and industry investment that the new bill aims to attract; however, the legislation also includes proposed changes to Massachusetts’s current non-compete law. As a result, this potentially could impact employers and employees across the Commonwealth.

One of the largest impacts on employers is the revision of “garden leave” payments, compensation paid to an employee during the period a non-compete prohibits the employee from working for a competitor. According to Massachusetts law, employers must provide this compensation, equal to at least 50 percent of their annual salary, during the restricted period. However, since the law’s enactment in 2018, many employers have used alternative considerations in their provisions when drafting noncompete agreements.

The proposed legislation would place much greater emphasis on the garden leave payment requirement. While supporters argue the law would promote greater flexibility and innovation, opponents point out that this new bill could make it much harder for businesses to protect confidential information. These changes could have implications for technology, life sciences, and other innovation-driven industries. D’Ambrosio LLP will continue to monitor developments regarding the Mass Wins Act
and its potential impact on Massachusetts employers and businesses.