Contractual noncompete agreements are at the center of the latest disagreement between Gov. Deval Patrick and House Speaker Robert A. DeLeo, who unveiled an economic development plan yesterday that would allow the practice to continue in Massachusetts.
"I've lost count of the disagreements ... between the sitting speaker and the traveling governor," said House Minority Leader Bradley H. Jones Jr. (R-North Reading).
Since releasing his $100 million economic plan in April, Patrick has been pushing to ban 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.
Larger companies, such as EMC, have used noncompetes, while many startups are backing away.
DeLeo's plan — also estimated at about $100 million — doesn't address noncompetes, essentially allowing them to continue.
"We're concerned about the stories ... about individuals whose lives ... have really been muddied by unscrupulous employers using noncompetes, not to protect their intellectual property, but to do harm to employees," said C.A. Webb of the New England Venture Capital Association, which was "disappointed" by DeLeo's position. "I've heard ... that even number years, the House likes to have an economic development bill that's business friendly and reps can feel good about taking home to their districts that are noncontroversial. The bill they've put forward is noncontroversial."
But Associated Industries of Massachusetts — which opposes Patrick's ban — said there's no need for the change.
"AIM would generally agree with the speaker that there are other issues that are more directly affecting the economy and jobs picture," said Chris Geehern of AIM.
Geehern argued if employees really despised the noncompetes, they'd leave and work instead for companies that don't use them — an exodus that isn't happening, he said.
"Since becoming speaker in 2009, creating jobs and bolstering our economy has been my top priority," DeLeo said in a statement.
Patrick, who was in the United Arab Emirates yesterday, did not address the noncompete issue.
"We are pleased that the speaker shares the governor's commitment to investing in the state's economic development, and look forward to working with the Legislature on a final bill to move our economy forward," said Patrick spokeswoman Jesse Mermell.
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