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Home Business Documents Non-Compete Agreement New Jersey

New Jersey Non-Compete Agreement Template

Prevent a person or business from competing with your company by using a New Jersey Non-Compete Agreement.

Published November 29, 2022

Prior to hiring a new employee, an employer may ask that employee to sign a non-compete agreement. A New Jersey non-compete agreement can prohibit an employee from sharing certain information with other people. A non-compete agreement in New Jersey may also prohibit an employee from going to work for a competitor for a certain amount of time within a certain geographic area. What do you need to know about non-compete agreements in New Jersey?

Table of Contents
  • Is a Non-Compete Legally Enforceable in New Jersey?
  • What’s Protected?
  • Reasonable Use and Exemptions
  • Non-Compete Agreement New Jersey Limitations
  • New Jersey Non-Compete Agreement Sample

Is a Non-Compete 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.

What’s Protected?

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 [1] .

A few common questions people ask about a non-compete agreement in New Jersey include:

  • 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

Non-Compete Agreement New Jersey Limitations

There are some limitations that people may encounter related to non-compete agreements in New Jersey. Employers need to think about these limitations to make sure their non-compete agreements are enforceable.

Limitations on time

In the event of a breach of a New Jersey non-compete agreement, you have 6 years to file a lawsuit.

Non-Compete agreement New Jersey geographical limitations

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.

New Jersey Non-Compete Agreement Sample

If you want to draw up a non-compete agreement in New Jersey, take a look at our free New Jersey non-compete agreement template, available in PDF and Word format:

Non-Compete Agreement

non compete agreement template

Download PDF
Download MS Word

Legal Templates uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial guidelines to learn more about how we keep our content accurate, reliable and trustworthy.

  1. § 13:42-10.16. https://casetext.com/regulation/new-jersey-administrative-code/title-13-law-and-public-safety/chapter-42-board-of-psychological-examiners/subchapter-10-general-obligations-of-a-licensee/section-1342-1016-client-accessibility-to-therapist-of-choice
non compete agreement template Preview PDF

New Jersey Non-Compete Agreement

Start building your New Jersey Non-Compete Agreement here.

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