Restrictive Covenants include non-competition, non-solicitation and confidentiality agreements. These are agreements that your employer may ask you to sign, before or during your employment. They limit an employee’s ability to compete against a former employer, who the employee can work with after their employment has ended, and the employee’s ability to use information learned while working for an employer.
Non-Competition Agreement: A non-competition or non-compete agreement prevents an employee from competing with a former employer. According to New Jersey (and this is true in many other states), law, a non-competition agreement must be reasonable in geographic scope, time limits and type of work that can be restricted. The agreement must not harm the public interest and must not be restrictive to the point that the agreement does not allow the employee to work in their chosen field or prevent the employee from obtaining another job.
Non-Solicitation Agreement: A non-solicitation agreement can mean one of two different types of agreements. The first type is an agreement in which the employee agrees that the employee will not solicit other employees of the employer to leave the employer’s business. The second type of non-solicit in an agreement in which the employee agrees not to induce any of the employer’s customers to leave the company and/or do business with another company.
Confidentiality Agreement: A confidentiality agreement is an agreement that an employer asks an employee to agree not to reveal confidential information to third parties. Employers make these agreements to keep information such as trade secrets, proprietary data and business plans from being shared with competitors.
If you've been asked to sign a non-compete, non-solicitation, or confidentiality agreement—or if your former employer is trying to enforce one—you don’t have to face it alone. New Jersey law protects employees from overly broad or unfair restrictive covenants. The employment lawyers at Wilentz, Goldman & Spitzer P.A. can review your agreement, explain your rights, and fight to protect your ability to work and earn a living. Contact us today for a confidential consultation.
They may be enforceable if reasonable in time, geography and scope, protective of legitimate business interests, not harmful to the public and not overly restrictive of the employee’s ability to work.
A non-solicitation agreement may limit an employee from soliciting the employer’s customers, clients or employees after leaving the company.
A non-compete limits where or how you can work after leaving. A confidentiality agreement limits disclosure or use of protected business information, such as trade secrets or proprietary data.
Possibly. Enforcement depends on the agreement, the employer’s business interest and whether the restriction is reasonable.
Do not ignore it. Save the letter, agreement and related communications, and avoid conduct in the areas covered by the agreement until you get legal advice before responding.
Meghan Chrisner-Keefe
Counsel
Stephanie D. Gironda
Counsel
