A recent decision by the Massachusetts Supreme Judicial Court may cause companies to think twice before inserting standard arbitration clauses into their commercial agreements.

Like many employers, you may have required your employees to sign non-competition agreements as a condition of employment when they joined the company. You may have received legal advice that the agreement was “reasonable in scope and duration” and would be enforceable. Recent court decisions indicate, however, that you must remain diligent to ensure that the company will be protected years later when an employee leaves to join a competitor.