On April 23, 2024, the Federal Trade Commission (the “FTC”) approved a new rule prohibiting employment related non-compete clauses. FTC Commissioners voted 3-2 along party lines to approve the new rule. The rule will be effective 120 days after publication in the Federal Register, and employees and employers should expect the rule to become effective on approximately September 1, 2024. What Is Covered by the New Rule? The new rule bans non-compete agreements or clauses for all workers going forward after the rule’s effective date. The rule also invalidates existing non-compete agreements or cl ..read more

Many real estate purchase and sale agreements contain a specific deadline by which the parties must perform and a clause stating that “time is of the essence.” This clause makes the deadline a condition subsequent, and if the deadline is not met or waived, then the parties’ obligations to each other are extinguished. Although “time is of the essence” clauses are strictly enforced, parties may waive these clauses, either expressly or implicitly, through their words or conduct. A recent decision by the Massachusetts Land Court discusses the circumstances in which parties may waive a “time is of ..read more

To combat fraud by companies seeking to profit off government contracts and reimbursement programs, Congress and Massachusetts lawmakers enacted what are known as “False Claim” acts. The Federal False Claims Act (FCA) and the Massachusetts False Claims Act (MFCA) have similar purposes and are similarly designed, but they have distinct characteristics that set them apart. One key difference lies in jurisdiction. The FCA is a federal law that applies nationwide, allowing the federal government to pursue cases involving false claims, such as fraudulent billing or overcharging, across all states ..read more

On October 31, 2023, a federal civil jury found that the National Association of Realtors (NAR) has conspired to inflate commissions paid to homebuyers’ real estate agents. It determined that the NAR and its co-defendants (some of the largest real estate companies in the country) owed almost $1.8 billion in damages to the plaintiffs (a class of buyers of real estate properties). The lawsuit, Burnett et. al. v. National Association of Realtors et. al. was filed and tried in the U.S. District Court for the Western District of Missouri. It involved violations of federal antitrust laws by the NAR ..read more

In Massachusetts, the Supplier Diversity Program is a state program that encourages state agencies to award state contracts to certified diverse businesses. To qualify for the program, companies must be certified as a diverse business in any of the following categories: Minority Business Enterprises Women Business Enterprises Service-Disabled Veteran Business Enterprises Veteran Business Enterprises Lesbian, Gay, Bisexual, and Transgender Business Enterprises Disability-Owned Business Enterprises The state’s Supplier Diversity Office (the “SDO”) administrates the certification process. The S ..read more

For nearly two decades, the First Circuit has recognized that there can typically be no failure to hire an individual without allegations that the individual applied for the job at issue. While noting that there may be certain facts that render an application unfeasible, this has been a rare finding. The United States District Court for the District of Massachusetts recently issued a promising decision for employees that clarifies the broad reach of retaliation claims. The decision cracks open the door ever so slightly to invite retaliation claims that do not fit squarely within the recognized ..read more

By Annabelle Hentz, Law Clerk The Supreme Judicial Court of Massachusetts recently upheld a Superior Court’s ruling that rent acceleration clauses are enforceable by commercial landlords against defaulting commercial tenants. Rent acceleration clauses allow for unpaid rent to constitute liquidated damages when a tenant defaults— regardless of the amount of unpaid lapsed time. Case Background Recently, a commercial landlord sought enforcement of a rent acceleration clause in a lease between the property owner and the tenant. The tenant, who defaulted one month after signing the lease, would owe ..read more

Until recently, Massachusetts federal courts had not determined whether a debt collector violates the Fair Debt Collection Practices Act (“FDCPA”) by failing to state whether interest is accruing (or not accruing) when offering to settle a consumer debt. In a recent ruling, a Magistrate Judge for the United States District Court for the District of Massachusetts concluded a debt collector does not violate the FDCPA by failing to disclose in a settlement offer whether an account is accruing interest so long as the settlement offer states that the holder of the consumer debt will accept payment ..read more

In Massachusetts when a buyer finds property to purchase, the first step in the process is to make an offer that the seller will accept. The buyer binds his offer with a small deposit until a more formal Purchase & Sale Agreement (“P&S”) is executed and additional deposit funds are delivered. The offer generally outlines the overall meeting of the minds of the parties and serves as the basis for the P&S, which spells out in more detail the full agreement between the parties. Currently, buyers are at a disadvantage because inventory is low. In order to be a successful bidder for lim ..read more

Construction subcontracts establish the legal relationship between subcontractors and prime contractors. Most subcontracts should mirror the terms and conditions outlined in the agreement between the owner and the general contractor (the “Prime Contract”) or, at a minimum, be consistent with and provide an explanation when the terms do not mirror the Prime Contract. To ensure a fair agreement, subcontractors need to pay attention to the contract terms and obligations that flow down from the Prime Contract. Flow down occurs when a Prime Contract states that certain clauses must be repeated or c ..read more