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Nov 7, 2023 · While New Jersey law doesn’t specify a maximum duration for non-compete agreements, the duration must be “reasonable.”. Typically, courts have upheld non-compete durations of six months to two years, considering factors such as the nature of the business and the role of the employee. The National Landscape: FTC and New York’s Stance on ...
Apr 24, 2024 · 2:09. The Federal Trade Commission voted 3-2 on Tuesday to ban noncompete agreements, a practice by which employers prohibit their staff from working for rival companies but which the federal ...
Non-compete agreements in the legal industry are governed by N.J. RPC 5.6. Licensed Psychologists: N.J.A.C. 13:42-10.16 Non-compete agreements for psychologists licensed by the New Jersey Board of Psychological Examiners are governed by N.J.A.C. 13:42-10.16. 2. For each statute or regulation identified in Question 1,
Aug 30, 2021 · However, non-compete clauses and agreements must meet specific New Jersey law requirements to be considered valid and enforceable. Under New Jersey law, non-compete agreements are only enforceable if they are reasonable with respect to the restrictions imposed on employees; however, what is deemed reasonable will vary depending upon each ...
- Legitimate Business Interest
- Sale of Business vs. Employment Contract
- Undue Hardship
- Public Interest
- Prohibited Professions
- Terminating An Employee
Employers may validly protect the following with non-compete agreements: 1. Trade secrets 2. Confidential business information that does not necessarily meet the definition of trade secret 3. Customer relationships Ingersoll-Rand Co. v. Ciavatta (1988).
A non-compete agreement that is included as part of the sale of a business is more freely enforceable than one included in an employment contract. (Solari Indus., Inc. v. Malady (1970)).
Whether a non-compete imposes an undue hardship on an employee depends on the difficulty of finding other work in the field, and the reason the employee is no longer working for the employer. In The Cmty. Hosp. Grp., Inc. v. More (2005), the New Jersey Supreme Court held that a non-compete did not impose an undue hardship because the employee, a ne...
In evaluating whether a non-compete agreement would harm the public, courts consider the demand for service in the field impacted by the agreement, and the effect that removing the restrained person would have. (Karlin v. Weinberg (1978))
Lawyers may not sign employment, partnership, or similar agreements that limit the attorney’s ability to practice in the future. Rule 5.6(a), New Jersey Rules of Professional Conduct. Lawyers cannot join case settlements that restrict their ability to represent clients in the future. Rule 5.6(b), New Jersey Rules of Professional Conduct. Although p...
It is unclear whether a non-compete is enforceable against an employee terminated by the employer. In The Cmty. Hosp. Grp., Inc. v. More (2005), the Supreme Court of New Jersey held that non-compete agreements are not enforceable against terminated employees if enforcing them would create a hardship. The employer has the burden of proving that a no...
Apr 24, 2023 · The sentiment is that non-compete clauses stifle competition and may unfairly restrict an employee’s rights to obtain employment with other companies by limiting when or where an employee can work after leaving a job. The following provides an overview of some of the proposed changes, nationally and in New Jersey. New Jersey Assembly Bill A3715
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Feb 27, 2023 · At the state level, the New Jersey legislature has moved to restrict employer use of non-compete agreements. Currently pending, Assembly Bill A3715 would restrict the use of non-compete agreements to certain types of employees. Under the proposal, nine categories of workers would be excluded from non-compete agreements. Those categories are:
