Restrictive Covenant Enforcement

Restrictive Covenants

Restrictive covenants, which are frequently included in employment contracts, are agreements between an employee and employer in which the employee agrees to refrain from engaging in specified business activities during and/or after the end of the employment relationship.  Restrictive covenants may consist of non-compete agreements, non-solicitation provisions, and confidentiality/non-disclosure Agreements. 

Types of Restrictive Covenants

  • Non-Compete Agreements.
    Non-compete agreements preclude employees from competing with his/her employer while working for the employer or upon a separation of employment.
  • Non-Solicitation Agreements.
    Non-solicitation agreements typically preclude an employee from soliciting customers, clients, and/or other employees from leaving the employer.
  • Confidentiality and Non-Disclosure Agreements.
    Confidentiality/non-disclosure agreements limit what an employee may discuss or disclose during and after separation from employment. Confidentiality/non-disclosure agreements typically cover sensitive and proprietary business information, trade secrets, pricing, client lists, and product development.

Restrictive Covenants Requirements

Restrictive covenants are generally enforceable if they meet certain requirements.  Specifically, to be enforceable, the restrictive covenant must protect a legitimate interest of the employer, such as trade secrets, customer relations, client lists, confidential information, etc.  The restrictive covenant must also be reasonable in time and geography, and must not place an undue hardship on the employee or violate public policy.  Whether a restrictive covenant is reasonable in time and geography is a fact-sensitive inquiry that depends upon a variety of factors.

Our Experience

Peterpaul Law’s employment attorneys are experienced in drafting and negotiating restrictive covenants, and representing employers and employees in litigation over restrictive covenants.  Every restrictive covenant is different and requires a skilled New Jersey employment attorney to review and analyze the terms in order to determine whether the restriction is enforceable or non-enforceable. If you have a non-compete agreement and would like an attorney to review and provide you advice and counsel regarding the likelihood that it would be enforceable, please contact one of our New Jersey employment attorneys to schedule a consultation.

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