Lee Segui Files Class Action Challenging Boston Beer Noncompetition Agreements

Lee Segui has filed a class action lawsuit against The Boston Beer Company, Inc., alleging that the company enforced noncompetition agreements without providing the compensation required under Massachusetts law.

The complaint centers on the Massachusetts Noncompetition Agreement Act, which sets strict requirements for employers seeking to restrict former employees from working in their industry. Under the statute, a valid noncompetition agreement must include either a “garden leave” provision—generally equal to at least 50 percent of the employee’s highest annualized salary over the prior two years—or other mutually agreed upon consideration.

The lawsuit alleges that Boston Beer required employees across roles and ranks to sign noncompetition agreements and then elected to enforce those agreements by paying departing employees $3,000, less taxes. According to the complaint, that amount falls far short of what the statute requires as garden leave compensation.

The case further alleges that Boston Beer aggressively enforced these agreements, including through litigation and direct communications with competitors, while failing to provide legally compliant compensation to affected employees. The complaint seeks to reform the company’s noncompetition agreements and recover unpaid garden leave amounts on behalf of former employees who were subject to enforcement.

The lawsuit was filed in the United States District Court for the District of Massachusetts. The case raises broader questions about how noncompetition agreements are structured and enforced, particularly in industries where mobility and competition shape opportunity.

As the case moves forward, the focus will remain on whether the statutory protections enacted by the Massachusetts legislature were honored—and what remedy is appropriate if they were not.