A bill to end Non-Compete Agreements was filed today on Beacon Hill by Representative Will Brownsberger.  The bill entitled, “An Act to Prohibit Restrictive Employment Covenants,” would amend part of the General Laws of Massachusetts, which deal with general employment provisions.

Currently, it is an accepted practice in any venture funded company in MA to require employees to sign Non-Compete, Non-Solicit and Inventions clauses when they are hired by the company.  West coast companies did away with them years ago.  I have seen these Non-Competes enforced more so out of spite than any legitimate threat to a company’s business.

Non-solicits are equally insidious, since they too are anti-competitive.  If someone leaves your start up company for another you are either: a) happy to see that person go; b) not compensating at market rates; or, c) not aware of what that person, and possibly others, know about the state of your business.

On the west coast, talent is more fluid.  Good people gravitate toward good ideas and bring along other good people with whom they have worked with in the past.  This greatly increases a company’s chances of success in an otherwise extremely difficult world in which to make money.

One argument that has been made in favor of non-competes is to prevent a cadre of engineers from leaving a company en masse to start another potentially competing company.  I actually witnessed this first hand while at Shiva and I still don’t like non-competes.  It was a mistake to lose these great engineers in the first place.  The second mistake was not investing in their business and getting a seat at the table in the event that they were successful, which they eventually were. 

I commend Rep. Brownsberger for filing this bill and hope it passes.  All in favor say, “Aye”.