IE 11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

Massachusetts’ Tech Community Fights to Ban Non-Compete Agreements

Opponents of the agreements say they are overused and overly broad, preventing some potential startup founders from starting their own companies.

(TNS) — The local tech community is getting ready to take to the Massachussetts' House once again, fighting to eliminate non-compete agreements they say stifle innovation and worker freedom.

“The longer this conversation goes on, the more people are understanding that this is just about a basic fairness issue,” said C.A. Webb, executive director of the New England Venture Capital Association, which has led the effort to ban non-competes. “It’s really very intuitive, this just fundamentally isn’t fair in the way it’s restricting the development of people’s career progress and their ability to make a living.”

Non-compete agreements prevent employees from taking jobs with competing companies for a set period of time after leaving a job. Supporters of the agreements say they are essential for keeping proprietary information safe when an employee leaves. Opponents say the agreements are overused and overly broad, preventing some potential startup founders from starting their own companies.

Some prominent tech companies, including EMC, support non-competes, however.

Last year, thanks in part to former Gov. Deval Patrick’s support for banning the agreements, State House hearing rooms were overflowing with people hoping to testify about the drawbacks of non-competes. A bill that would have put stricter limits on non-competes passed the Senate, but the final version of the economic development bill did not include the measure. A spokesman for Gov. Charlie Baker declined to take a position on non-competes.

This year, the non-compete fight is part of a policy agenda for the NEVCA that includes immigration reform and fixes to transportation infrastructure.

“The three things that we’re focused on this year are all talent-related issues,” Webb said.

In recent years, the tech industry and Beacon Hill have started to come together, though collaboration hasn’t always come easily.

At an event held at the State House earlier this year designed to connect tech companies focused on the Internet of Things sector and legislators, one lawmaker noted that more than half the companies in attendance said they had never been in the State House before.

Thomas Erickson, the chief executive of Boston-based website technology company Acquia, made waves a year ago when he said his company would eliminate non-compete agreements. After last year’s effort, Erickson said, he began to become more aware of the importance of State House policy. Erickson is now a member of a number of trade and policy groups, including Baker’s economic development council.

“When you see these things being done, you realize you have to do something about it,” he said. “We have to look at all the factors that might inhibit the opportunity for the economic growth for the state.”

©2015 the Boston Herald, Distributed by Tribune Content Agency, LLC.