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Protecting Your Interests in NJ Non-compete Agreements

Hackensack lawyers explain what a non-compete agreement means to you

When employees sign non-compete agreements, they are promising not to compete with their employer’s business for a specified amount of time after leaving the company. Contract disputes typically occur when either the employer or employee fails to understand what their rights and duties are under the agreement and New Jersey law. At Deutsch Atkins, P.C. we thoroughly explain what your covenant not to compete means, and we help determine whether it has been breached.

Enforceability of non-compete agreement

One of the most crucial questions regarding a non-compete contract is whether it is enforceable under New Jersey law. Every restrictive covenant is unique, but in general, the following factors will determine whether the agreement is enforceable in New Jersey:

  • Geographical restrictions. Is the geographical limitation in the contract too far-reaching? Does it place an undue burden on the employee’s ability to find other employment where he or she currently lives?
  • Job limitations. Do the employment restrictions reasonably apply to the employer’s business? Are the restrictions limited to working for current competitors or recruiting from current client lists?
  • Time duration. Does the term of the non-compete agreement protect only the employer’s short-term business or does it exceed the time it takes to reasonably adjust to the loss of the employee?
  • Restrictions on investment opportunities. Does the agreement place unnecessary restrictions on the ability of an employee to invest in a competitor?
  • Function or status of employee. Do the employee’s job responsibilities serve an essential function sufficient to warrant a covenant not to compete?

Courts strictly review non-compete agreements to ensure that you are not forced out of your town or profession. If a non-compete prohibits you from using professional skills that you have developed over the years, the restrictions are likely to be found to be overly broad and unenforceable.

Determining your rights under a non-compete contract

If you have already signed a non-compete agreement and you want to know your rights and duties under it, our experienced business litigation attorneys

Contact a New Jersey business litigation attorney today

Deutsch Atkins, P.C. is based in Hackensack, NJ. We serve clients in northern New Jersey, including Hudson, Morris, Passaic and Bergen counties. We discuss fee arrangements on a case-by-case basis. Contact us at (201) 498-0900 or to schedule your initial consultation contact us online.