This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
New Jersey Post-Employment Restrictions on Competition, also known as non-compete agreements or restrictive covenants, are legal agreements between employers and employees that limit the latter's ability to compete with the former after termination of employment. These agreements seek to protect a company's trade secrets, confidential information, client relationships, and investment in employee training, while also balancing employees' rights to pursue their careers. Under the New Jersey law, there are three types of post-employment restrictions on competition: 1. Non-compete agreements: These agreements prevent employees from working for a competitor or engaging in a similar business within a specific geographic area and for a limited duration after leaving their current employer. Non-compete agreements are generally more stringent and may be subject to stricter scrutiny by the courts. 2. Non-solicitation agreements: These agreements prohibit employees from soliciting the employer's clients, customers, or employees for a certain period after employment termination. Non-solicitation agreements are typically more focused on protecting the relationships and goodwill established by the employer. 3. Confidentiality agreements: These agreements aim to safeguard the employer's confidential and proprietary information. They restrict employees from using or disclosing trade secrets, customer lists, marketing strategies, or any other confidential information acquired during their employment. Confidentiality agreements apply even after employment termination. It is important to note that New Jersey law places certain limitations on the enforceability of post-employment restrictions on competition. Courts scrutinize these agreements to ensure they are reasonable in scope, duration, and geographic area, and that they do not impose an undue hardship on the employee. Additionally, non-compete agreements in New Jersey are unenforceable against certain categories of employees, such as low-wage workers and those terminated without cause. Overall, New Jersey post-employment restrictions on competition seek to strike a balance between protecting an employer's legitimate business interests and allowing employees the freedom to seek employment and utilize their skills and experience in the job market.
