Fair Non-Compete Provisions in New Jersey

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.