New Jersey Restrictive Covenants are permitted by New Jersey law. Restrictive covenants are agreements between you and the employer regarding certain activities that you will not do while employed by the company and after your employment terminates for any reason whatsoever. The typical restrictive covenants in New Jersey consist of non-compete agreements and non-solicitation agreements.
Non-compete agreements prevent you from competing with your company both during and after your employment. NJ Restrictive Covenant Law will allow the employer to prevent you from working for a competitor for up to two years. The law requires that the geographic scope of the restrictive covenant be limited so that the employee can still find work and the employer is still protected. However, most non-compete agreements are very broad and it will take a court limiting the scope of the restrictive covenant.
Non-solicitation agreements are the other common form of NJ Restrictive Covenants. These agreements prevent you from soliciting clients and employees of the company from leaving to go to your new employer/business. This restrictive covenant contains the same type of requirements, i.e. two year limitation and scope. NJ restrictive covenant law will enforce a non-solicitation agreement preventing you from soliciting clients and employees to join your business. However, nothing will prevent the employee or client from joining you as long as you do not directly, or indirectly, solicit them.
If you have any questions regarding your NJ Restrictive Covenant, please contact our NJ Employment Lawyers for a complete evaluation of your agreement.