At the close of the legislative session, Massachusetts lawmakers passed a law prohibiting the use of non-compete agreements for certain employees and dramatically restricted their use for others. The Massachusetts Non-competition Agreement Act – Section 21 of the Economic Stimulus bill was signed into law last week by Governor Charlie Baker and, effective October 1, applies to employees who either live or work in the Bay State. The law prohibits the use on non-compete clauses for employees considered nonexempt under the Fair Labor Standards Act (FLSA), including hourly workers eligible for overtime, full-time students, workers age 18 and under, as well as employees fired without cause or laid off. In addition, where non-compete clauses are allowed, the new provisions limit enforceability to one year and require a “garden leave” clause entitling the employee to pay during the one year restrictive period. This pay during the “garden leave” must equal at least 50 percent of the employee’s highest annualized base salary over the previous two years. Lastly, the employer must provide current employees with some payment or benefit other than the promise of continued employment in exchange for the promise not to compete.