A company's intellectual property walks out the door every time an employee leaves. Because of this, noncompetition, nonsolicitation and nondisclosure agreements have become an important tool for companies seeking to protect their interests.
Many employers require that their employees sign, at hire, a standard agreement containing restrictions on post-employment conduct.
Three recent decisions by Massachusetts judges call that assumption into question. These cases, all issued in 2004, hold that a noncompete signed at an employee's hire may later become unenforcable due to changed circumstances in the employee's job. The decisions highlight the need for employers to engage in planning to maximize their ability to protect their interests through restrictive agreements.