Fair Non-Compete Provisions in New Jersey

By Thomas McKinney

We review hundreds of non-compete agreements each year from various employers throughout New Jersey.  The typical non-compete agreement contains a a two year restriction on any competitive activity throughout the State of New Jersey.  These non-competes prevent the employee from working in their field and will force them to try and find work that they have never done before.

We have come across two non-compete agreements that are fair to the employee while still protecting the interests of the employer.  These non-compete agreements require the employee to inform the employer of a bona fide offer.  The employer has a certain amount of days to decide whether it will chose to enforce the provisions of the non-compete or allow the employee to begin working for the new company.  In the event that the employer decides to enforce the provisions of the non-compete, the employer agrees to pay the employee his/her base salary for the entire non-compete period.  If the employee accepts a lesser paying position that is not in competition, the employer agrees to make up the difference in pay between the new non-competitive job and old job.

These are the only type non-competes that we believe are fair to the employee and protect the interested of the employer.  Hopefully the New Jersey legislature will enact a statute that requires employers to pay for the enforcement of non-competes.

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.