Non–Compete Agreements
We would like to see non-compete agreements outlawed in the State of New Jersey. We make that statement because we have seen over the years the harm that non-compete agreements can do to employees in this State who have been tied down to non-compete agreements.
A non-compete agreement can turn an employee into an indentured servant. To begin with, non-compete agreements are often so broadly written that they will bar an employee who has signed one from finding a job – for a year, two, or even three – in the only field in which he or she has ever worked. The result: unemployment or underemployment for long periods of time.
Moreover, if an employee (call him “John Smith”) leaves a job where he has signed a non-compete agreement to accept a job with a new company – one that may or may not be “off-limits” under the terms of his non-compete agreement – Smith may well be entering into the “lose-lose” zone. His old employer may well decide to take Smith [and often his new company] to court to block him from taking the new job. At that point, a number of bad things can happen – the worst of which is that the new company may decide it wants no part of a lawsuit and fires Smith, leaving him without his old job or the new one and still saddled with a non-compete agreement.
Because of the perils of non-compete agreements, it is always far better to consult with an attorney before making your move, rather than after. We have often found that, upon close examination, a non-compete agreement may not be as airtight as it might first seem. We have also at times been able to negotiate an employee out of his non-compete agreement.
As the partners at Schall & Barasch, we have been involved in some of the most cutting-edge litigation in the State of New Jersey involving non-compete agreements, including the case of Maw v. Advanced Clinical Communications, Inc., which centered on the issue of an employee’s right of refuse to sign a non-compete agreement without the fear of losing her job.
If you have questions or concerns about how to handle a non-compete agreement you have signed, please contact our firm by completing the on-line Questionnaire accessible on every page of our website.
Practice Areas
Schall & Barasch LLC
Attorneys At Law
Moorestown Office Center
110 Marter Ave., Suite 302
Moorestown, NJ 08057
Tel. 856.914.9200
Fax 856.914.9420
This website is designed to provide general information only. It does not provide, nor is it intended to provide, legal advice of any kind. Instead, if you are in need of legal advice, you should consult with an attorney of your choosing who can review with you your individual situation.