New Jersey Restrictive Covenant Lawyers

What is a restrictive covenant? Many employment contracts include certain provisions, known as restrictive covenants, which limit former employees’ post-employment activities. These limitations are designed to protect the company’s best interests, but at what cost? If a restrictive covenant unfairly prevents you from gaining meaningful employment elsewhere, or starting your own business, you may have the basis of a lawsuit.

At the NJ employment law firm of Aiello, Harris, Marth, Tunnero & Schiffman, P.C., we help workers from feeling the ramifications of unfair and illegal employment practices. When a restrictive employment contract infringes on your ability to further a career post-employment, turn to us for help.

Examples of restrictive covenants

Certain companies believe that restrictive covenants are essential to preserving their business interests.

To this extent, there are three main types of restrictive covenants:

  • Ones that prohibit employees from revealing confidential business information or trade secret post-employment
  • Ones that prohibits employees from soliciting the clients or other employees of the former employer
  • Ones that prevent employees from working in a same field or starting a business in the same field

For example, a non-compete agreement might state you cannot work for your former employer’s competitor within 50 miles of your former employer. If you worked for a pharmaceutical company, you might be barred from revealing the ingredients in a type of medication. If you work in the sales industry, you may be disallowed from taking your existing clients from your former employer and recruiting them for the same type of service.

Are restrictive covenants enforceable in New Jersey?

Yes, restrictive covenants are enforceable, but only under certain conditions. To be enforceable under New Jersey law a restrictive covenant must be shown to be reasonable. To be found “reasonable,” the provision must meet these three standards:

  • the covenant protects a legitimate interest of the employer;
  • the covenant imposes no undue hardship upon the employee; and
  • the covenant is not injurious to the public interest.

If the covenant is found to be “unreasonable,” you may have legal recourse to pursue.

Reasons to challenge a restrictive covenant in an employment contract in NJ

Simply because you signed an agreement with restrictive provisions does not mean you are bound by its terms.

In New Jersey, you might decide to challenge your former employer’s contract because:

  • A potential employer is afraid to hire you because of liability
  • The employer’s definition of “competing business” is too broad
  • The geographical area covered by the clause is too expansive
  • Your former employer has no ‘legitimate’ business interest to protect
  • You did not have access to trade secrets or propriety information

Our employment attorneys review your specific agreement and determine its validity.

Contact our New Jersey restrictive covenant lawyers today

Get the compensation you deserve with legal counsel from Aiello, Harris, Marth, Tunnero & Schiffman. Our top employment law attorneys use their deep knowledge of the law and tough negotiation skills to ensure the best possible outcome. To arrange a free initial consultation, call our firm today at (908) 561-5577 or contact us online.

Share