New JErsey Non-Compete Agreements Tag Archives

Published on: April 30, 2024

Non-Compete Agreements Would be Abolished Under New FTC Rule

New Jersey employment law has generally upheld non-compete (or non-competition) agreements provided they met certain requirements aimed at allowing employees to earn a living. Non-compete agreements have been much vilified by pro-employee groups, and much 5-225x300 supported by pro-employer groups. However, the United States Federal Trade Commission has issued a rule which would prohibit non-compete agreements. At least one lawsuit has been filed aiming to block the new regulation, and others are expected. So whether the rule will take effect, and if so in what form it will be allowed, is still an open question. However, employers and employees should be prepared, because unless an injunction is issued the rule will become effective in several months.

The Rule

The Rule, part of the United States Code of Federal Regulations, defines non-compete clauses as:

Published on: July 16, 2022

New Jersey Non-Compete Agreements and Employee Duty of Loyalty Examined by Appellate Division

by Maurice W. McLaughlin

New Jersey law imposes certain requirements on the behavior of employees, whether through the common law or contract. New Jersey employment law and business law will enforce restrictive covenants, including non-compete agreements, if they meet certain requirements. However, the tests for enforceability are different for restrictive covenants contained in employment agreements and those which are part of stock-photo-4786200-handshake-at-the-business-meeting the sale of a business. Likewise, whether or not there are restrictive covenants, New Jersey employment law imposes on employees a duty of loyalty to their employers. The Appellate Division recently examined these requirements.

Background

Robert Ryerson was a registered investment advisor (RIA), providing financial planning and investment services until the National Association of Securities Dealers (NASD) found him guilty of misconduct in 2006 by sharing commissions with non-NASD members and intentionally misleading his employer. Ryerson owned and operated NCP, a small financial advisory firm. However, the NASD’s revocation of his license meant he could no longer operate NCP.

Published on: February 19, 2019

Rubio Introduces Freedom to Compete Act

by McLaughlin & Nardi, LLC

contract-1464917__340-300x200 Senator Marco Rubio recently introduced the Freedom to Compete Act. This proposed law would prohibit employers from entering into or enforcing non-compete agreements with lower level employees while simultaneously protecting employers’ trade secrets.

Non-Compete Agreements

Non-compete agreements are binding contractual restrictive covenants which limit an employee’s ability to compete with her employer after she leaves or while she is employed. These agreements normally prohibit the employee from forming a competing business, and also from directly or indirectly capacity by working for a competitor or soliciting their employer’s customers.