A top lawmaker is reversing course, saying his committee will hold a hearing on a bill that would ban noncompete agreements as business groups on both sides of the divisive issue say they are standing firm.
"Over the past several weeks, there has been a healthy and productive dialogue about the proper role of noncompetes in our state's economy," said Rep. Joseph Wagner (D-Chicopee), co-chairman of the Joint Committee on Economic Development and Emerging Technologies. "There are more options than either accepting noncompetes as they exist currently or banning them altogether. There is a middle ground that should be explored."
Gov. Deval Patrick has proposed a ban on noncompete agreements — a clause in employment contracts barring workers who leave a company from joining or starting another company in the same field for a year or two — as part of his economic development bill. Just two weeks ago when House Speaker Robert A. DeLeo unveiled his economic development bill that didn't include a ban on noncompete clauses, Wagner, who helped craft that bill, said the issue was "not the most significant matter."
While the omission in DeLeo's bill was seen as a setback for supporters of the ban, now the tide appears to have shifted with plans for a hearing on a standalone bill.
"It looks promising that a bill could be pushed forward during this legislative session," said C.A. Webb, executive director of New England Venture Capital Association, which represents many tech companies that want to see noncompete agreements banned.
Critics say the agreements stifle innovation and prevent employee mobility, while supporters say noncompetes are crucial for protecting intellectual property and trade secrets.
Yesterday, Patrick said the ultimate success or failure of the proposed ban would come down to the various business groups that have an interest in the issue.
"If we can get the industry to come to the table and work together and compromise, I think we'll get something done," Patrick said. "The extent to which it gets pushed depends on people who are working in the field."
Chris Geehern, a spokesman for Associated Industries of Massachusetts, said there has been no change to the group's staunch opposition to a ban.
"We think the current law governing noncompetes works well," Geehern said. "We frankly don't see any need to change the law."
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