Ogletree Deakins: Change in Compensation Voids Massachusetts Non-compete Agreement | Practical Law
https://content.next.westlaw.com/practical-law/document/Ibb0a6302ef0511e28578f7ccc38dcbee/Ogletree-Deakins-Change-in-Compensation-Voids-Massachusetts-Non-compete-Agreement?viewType=FullText&transitionType=Default&contextData=(sc.Default)This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses the Massachusetts Superior Court decision in Grace Hunt IT Solutions, LLC v. SIS Software holding that a change in compensation is a material change requiring the execution of new non-compete agreements. In Grace Hunt IT Solutions, a successor company asked its new employees to sign new restrictive covenants and offered a new bonus structure. The employees refused to sign the restrictive covenants and left for a competitor software company. The court found it "extremely significant" that the successor offered new agreements, signaling that the old agreements were being replaced by a new arrangement. Furthermore, the court found that the change in compensation was a material change that would void the previous non-compete agreement.
Published on 19 Mar 2012 • Massachusetts, United States
This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses the Massachusetts Superior Court decision in Grace Hunt IT Solutions, LLC v. SIS Software holding that a change in compensation is a material change requiring the execution of new non-compete agreements. In Grace Hunt IT Solutions, a successor company asked its new employees to sign new restrictive covenants and offered a new bonus structure. The employees refused to sign the restrictive covenants and left for a competitor software company. The court found it "extremely significant" that the successor offered new agreements, signaling that the old agreements were being replaced by a new arrangement. Furthermore, the court found that the change in compensation was a material change that would void the previous non-compete agreement.