NJ Employment Contracts – A Breach by the Company May Nullify Other Provisions

The Third Circuit Court of Appeals recently held that an employer may not be entitled to enforce a non-compete agreement if it violated other terms of the employment agreement.  In Figueroa v. Precision Surgical, Inc., 2011 U.S. LEXIS 7583 (3d Cir. Apr. 12, 2011), the Court held that the employer was not entitled to a preliminary injunction preventing the employee from working for a competitor or competing with the employer because it misclassified the employee as an independent contractor.  Based on this ruling, an employee may be able to argue that certain restraints set forth in an employment agreement may be invalidated if the employer violated e law or other terms of the agreement.
May 25, 2011 – Castronovo & McKinney – Tom McKinney