Could a Former Employee Walk Out the Door With Your Clients?
by Christine M. Vanek on August 29, 2012
Non-competition agreements prohibit former employees from working for a competitor for a stated period of time. Therefore, they are valuable for protecting confidential company information and preserving valuable client relationships when an employee leaves the company.
New Jersey courts, however, typically do not like restraints on trade. Therefore, to survive judicial scrutiny, non-competition agreements must be reasonable in both scope and duration.
To make this determination, courts will generally address the following questions:
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Labor & Employment Law Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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