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New Jersey Restrictive Covenant Lawyers
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Restrictive Covenants In New Jersey
What is a restrictive covenant? Many employment contracts include specific 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 Abate, Law Group PC, we help workers avoid the ramifications of unfair and illegal employment practices. When you have a restrictive contrato de trabajo, you can’t continue your career post-employment. Please 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:
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- Ones that prohibit employees from revealing confidential business information or trade secrets post-employment
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- Ones that prohibit employees from soliciting clients or other employees of the former employer
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- Ones that prevent employees from working in the 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:
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- The covenant protects a legitimate interest of the employer;
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- The covenant imposes no undue hardship upon the employee; and
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- The covenant is not injurious to the public interest.
If the covenant is “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 its terms bind you.
In New Jersey, you might decide to challenge your former employer’s contract because:
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- A potential employer is afraid to hire you because of liability
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- The employer’s definition of “competing business” is too broad
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- The geographical area covered by the clause is too expansive
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- Your former employer has no ‘legitimate’ business interest to protect
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- You did not have access to trade secrets or proprietary information
Nuestro Abogados laborales de Nueva Jersey look over your specific agreement and then determine its validity.
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