Royal

Recognizable Harm from Violated Non-Competes

May 8, 2023

An employee in Massachusetts, under non-competition and non-disclosure agreements with their employer, allegedly downloaded and took copies of proprietary, confidential, and highly sensitive technical information from their employer. The employee then took this information and began working for a direct competitor.


The employer sued the employee for breach of contract, conversion of property, violating the Massachusetts Uniform Trade Secrets Act (G.L.c. 93, §§42-42G), and committing unfair trade practices that violate the business-to-business section of the Massachusetts Consumer Protection Act (G.L.c. 93A, §11). 


Despite the employee’s argument that the agreements are unenforceable under the Massachusetts Non-Competition Act (G.L.c. 149, §24L), the complaint was not dismissed. The court held that the statute did not apply here, because the employee signed their non-competition agreement before the new statute took effect. The employee executed this contract, and by its terms, it became effective on September 28, 2018. The Legislature’s limited application of §24L to agreements entered after October 1, 2018, three days after the employee signed the non-competition agreement. 


However, the court held that the employer’s failure and apparent inability to allege that the employee had made any use of its proprietary information means that the employer had failed to state a viable claim under G.L.c. 93A, §11. Therefore, the court held in favor of the employee due to employer’s failure to prove cognizable harm or injury.


If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

March 28, 2025
The Royal Law Firm was a Finalist for Best Law Firm in The Best of The Valley Readers' Poll for 2025, as published by the Valley Advocate! Thank you to everyone who voted for us, and to those of you who trust us to help you in times of need. Click here to check out all of the category winners and finalists.
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The EEOC has issued guidance on what constitutes illegal DEI and its application to private employers. Employees alleging DEI-based discrimination are required to file a charge of discrimination with the EEOC to prove probable cause and be awarded a Notice of Right to Sue to pursue a suit in Federal Court under Title VII. Illegal DEI practices are when an employer or other covered entity takes any employment action influenced- in whole or in part- by race, sex, or another protected characteristic. The guidance is very clear that protected characteristics cannot have any bearing on employment action; it doesn’t matter if it’s the only factor, deciding factor, or one of many equally weighed factors. Any consideration toward a protected characteristic is illegal. Client and customer requests are not an exception unless there is a bona fide occupational qualification “reasonably necessary to the normal operation of that particular business or enterprise” in regard to religion, sex, or national origin. The limited exception of the bona fide occupational qualification is not extended to race or color. The EEOC has stated that, “depending on the facts, an employee may be able to plausibly allege or prove that a diversity or other DEI-related training created a hostile work environment by pleading or showing that the training was discriminatory in content, application, or context.” It is prudent practice to seek legal counsel to avoid prosecution under this new guidance. The attorneys at The Royal Law Firm are committed to helping employers navigate EEOC complaints and investigations. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
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