A New Jersey Non-Compete Agreement is a legally binding contract between an employer and an employee. This agreement may prohibit the employee from sharing certain information with others and may restrict them from working for a competitor within a specific geographic area for a certain amount of time.
If you are considering signing a non-compete agreement in New Jersey, it is important to understand the specific details and restrictions outlined in the agreement before signing.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Yes.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Yes.
Legally Enforceable in New Jersey?
Yes, a non-compete agreement in New Jersey is legally enforceable. Employers must take steps to protect themselves and their business interests, and New Jersey non-compete agreements can be a helpful tool. At the same time, they must be structured carefully to ensure they are enforceable in a court of law.
If a non-compete agreement in New Jersey is overly broad or unduly harsh, it might not be enforceable.
There are several types of information that can be protected by a non-compete agreement signed in New Jersey. For example, a non-compete agreement can protect trade secrets related to the business, as well as other forms of confidential business information.
Goodwill and existing customer lists can also be protected by a non-compete agreement signed in New Jersey.
If the employer can justify that the information is vital to his or her business interests, then it could be protected by a non-compete agreement in New Jersey.
Reasonable Use and Exemptions
There are reasonable use stipulations and exemptions related to non-compete agreements in New Jersey. For example, a non-compete agreement in New Jersey can only be used to protect legitimate business interests. The non-compete agreement cannot be an undue burden on the employee, and it cannot be injurious to the greater public as a whole.
In addition, a non-compete agreement cannot be overly broad in terms of time, space, or scope. A non-compete agreement also cannot be applied to in-house counsel and psychologists as per § 13:42-10.16.
Limitations on Time
In the event of a breach of a New Jersey non-compete agreement, you have six years to file a lawsuit.
There are no explicit geographic limitations on a New Jersey non-compete agreement, but it cannot be overly broad or unduly harsh. An employer should be prepared to justify why they have created a specific geographic boundary for a statute of limitations.
Take a look at our free New Jersey non-compete agreement template, available in PDF and Word format: