In some situations, an employer can keep a worker from joining a competitor after leaving his or her job. Determining whether agreements like this are enforceable can be difficult and fact-sensitive. Here are a some considerations:
- The duration of a restriction (shorter restrictions are more likely to be enforced; up to two years is generally considered reasonable)
- The geographic area of the restriction
- The nature of the employee’s position (restrictions on key employees are more likely to be considered reasonable)
Notably, there is a bill currently pending in the New Jersey legislature that would make it more difficult to impose restrictions and narrow those that can be imposed. Click here.
You should always request a copy of everything you sign so that, if there is a dispute later, you (and your lawyer) will know what the documents say.
We can help New Jersey workers and businesses address wage and hour problems. Questions? Contact Alex Pisarevsky at ap@njlawfirm, or (201) 845-9600.