New Jersey Noncompete Agreement: What's Included and Enforceability
Quick Facts — Noncompete Agreement Lawyers (New Jersey)
- Avg cost to review a Non-Compete Agreement: $360.00
- Lawyers available: 30 New Jersey employment lawyers
- Clients helped: 9 recent noncompete agreement projects in New Jersey
- Avg lawyer rating: 5.0 (6 reviews)
Is a Non-Compete Agreement Enforceable in New Jersey?
Yes. Non-compete agreements are enforceable in New Jersey as long as the contract abides by certain rules developed by the Supreme Court of New Jersey. When determining whether a non-compete agreement is enforceable, courts will use the “Solari/Whitmyer Test”. Under this test, non-competes must:
- Protect the legitimate interests of an employer
- Not impose undue hardship on an employee
- Cannot be injurious to the public
The courts further explain that a “legitimate interest” can include customer relationships, trade secrets, and confidential business information. If a non-compete agreement fulfills these three rules, it will most likely be enforced in New Jersey.
When Will a Non-Compete Agreement Not Be Enforced in New Jersey?
Non-compete agreements will never be enforced against psychologists or lawyers. A psychologist is exempt from any non-compete agreement that would prohibit a patient from being able to see the psychologist of their choice. Similarly, attorneys cannot enter into an agreement that would restrict their right to practice law.
Courts recognize that a non-compete agreement that restricts professionals like psychologists and attorneys from practicing their trade would be a detriment to society and injurious to the public.
Can I Work for a Competitor If I Sign a Non-Compete in New Jersey?
Generally, non-compete agreements will contain a clause that states the employee cannot work for a competitor. The non-compete will also restrict the employee from opening a business that offers the same services or sells this same product. These restrictions will be subject to a geographic area and a specific amount of time set in the contract. This is to prevent an employee from using a former employer’s trade secrets or customer relations to create unfair competition.
How Long Does a New Jersey Non-Compete Agreement Last?
When determining how long a non-compete agreement should last, courts in New Jersey consider the geographic area that is restricted by the contract. Historically, courts have ruled that an agreement lasting three years is reasonable when the geographic boundary for the non-compete is limited to the city where the employer is located.
A non-compete agreement that has a longer duration or a larger geographic boundary may be ruled unreasonable because it puts an undue hardship on the employee.
How Do You Get Around a Non-Compete Agreement in New Jersey?
To get around a non-compete agreement in New Jersey, an employee must show a court that the agreement is unenforceable and doesn’t adhere to the standards of the “Solari/Whitmyer Test”. This can by done by demonstrating that the agreement is overly broad, puts an undue hardship on the employee, or negatively affects the public.
Other ways an employee can try to get around a non-compete agreement include:
- Negotiate the terms. An employee may be able to negotiate the terms of the non-compete agreement with their employer. This could involve modifying the duration, geographic scope, or other terms to make the agreement more reasonable.
- Seek employment outside of the restricted area. Many non-compete agreements in New Jersey are limited to only restricting work in the city in which the employer is located. A former employee can seek a job outside the geographic boundaries to get around a non-compete agreement.
What Voids a New Jersey Non-Compete Agreement?
A New Jersey non-compete agreement will be void if it was entered into under duress, coercion, or false pretenses. An employer is not allowed to threaten or coerce an employee to sign a non-compete. Similarly, an employer cannot make false statements to get an employee to sign the contract. These actions will void a non-compete agreement.
Frequently Asked Questions
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Meet some of our New Jersey Noncompete Agreement Lawyers
Ken S.
Transactional attorney specializing in mergers & acquisitions. Other services include business formation, contract review, and general corporate matters.
"Would recommend to anyone who needs ToS services, and will be my first go for future legal matters as well"
Antonella C.
I am a business transactional & trademark attorney with 15 years experience in the law firm and in-house settings. I am barred in Pennsylvania and New Jersey. I currently own my own practice serving businesses and entrepreneurs with business transactional and IP law.
August 9, 2023
Daniel K.
My practice focuses on business and commercial litigation. I have worked with companies of all sizes from sole member LLCs to those in the Fortune 500. I've advised clients on mergers, equity issuances, commercial transactions, joint ventures, employment issues, and non-competition. I've also drafted and negotiated the underlying agreements for these transactions and more.
Ryan M.
Tanu C.
Ms. Tanu Chaturvedi Esq. brings vast experience: experience as an Attorney at a company that is a global leader in e-Discovery, experience as the sole domestic Corporate Legal Counsel at a respected corporation in the nation’s capital, experience as the sole international and domestic Corporate Counsel at a multi-million dollar international corporation, experience as a legal & business leader in the legal department at the world's leading mission capability integrator in the nation's capital that has been named a Top 100 Employer Forbes by state & Top 25 Defense Contractor in the world & named Top 7 in the Washington Technology Top 100 2022 & one of the largest defense contractors in the marketplace & has also been named as Top Managed Company by The Wallstreet Journal & included in the Inc. 500, experience as the sole Attorney at a national company that was recognized in 2017 as a top employer in the capital by "The Washington Post" & has also been listed on the Inc. 5000 more than once as one of the fastest growing companies in the nation, & in 2019, & named as a Finalist for the DC Moxie award: for businesses that demonstrate significant boldness & innovation in business strategy, experience working at one of the world's largest insurance brokerage firms, one of the largest law firms in the capital, experience working at a corporation with global reach that was lead by a former cabinet member of the Clinton administration, experience working at a Fortune 500 in one of the world's largest insurance markets, at an internationally recognized boutique law firm, experience as the only female legal professional in the felony division of a criminal department in the nation's most dangerous jurisdiction as an undergrad, & experience working in the offices of public officials. She brings extensive experience working with both commercial contracts and government contracts. She also successfully completed two distinct certificates and an online course in Contract Management from the National Contract Management Association. More specifically, she also brings extensive legal experience in corporate law, general litigation, insurance law, and employment law. She brings extensive experience with People Management. She started her career as a manager managing up to fifteen interns in her first legal role. She has managed a team of up to fifteen attorneys, and has managed interns on regular basis in her other professional role throughout her career. She has extensive experience with technology (Contract Management Platforms and Relativity). She has incorporated legal technology platforms into her offices throughout her career. She has successfully implemented the technology, drafted standard operating procedures, and provided office training for the technology platform utilization throughout the entire company. She is also a graduate from three different internationally recognized institutions that have a record of turning out graduates with the skill to lead in their industries & distinguished law school graduate from an ABA accredited law school and received recognition for academic & leadership achievement while in law school. She hold a Juris Doctorate (Cum Laude), and a certificate in Business Analytics from Wharton Business.
July 27, 2023
Stephen S.
Stephen is a graduate of Nova Southeastern University - Shepard Broad College of Law, Stephen is licensed to practice in New Jersey and New York. He focuses on Morris, Passaic, and Bergen County, New Jersey, but services all of New Jersey. Before graduating, Stephen did an externship in Denver, Colorado with a focus on land use and development. Upon returning to New Jersey, he focused on Condominium and Home Owner Association. He also worked with Residential Real Estate Transactions and Estate Planning clients.
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Anthony V.
Anthony M. Verna III, is the managing partner at Verna Law, P.C. With a strong focus on Trademark, Copyright, Domain Names, Entertainment, and Advertising law, Verna Law, P.C. strives to provide all Intellectual Property services a modern business of any size may need to market and promote itself better. From the very early concept stage, Verna Law, P.C. can conduct a comprehensive, all-encompassing search and analysis on any proposed trademark to head off complications. Once the proposed concept enters the Alpha stage, Verna Law, P.C. can seamlessly switch to handling registration, protection, and if needed, defense of registered trademarks, copyrights, and domain names, as well as prosecution of entities violating said rights. Verna Law, P.C. also provides intellectual property counseling and services tailored to fit into your business’ comprehensive growth strategy. This shows as many of Verna Law, P.C.’s clients are international: from China, the United Kingdom, Canada, and Germany, Verna Law’s reach is worldwide. Additionally, Verna Law, P.C., can handle your business’ Entertainment and Advertising law needs by helping your business create advertising and promotions that keep competitors and regulators at bay. Located in the shadow of New York City, Verna Law, P.C. has a global reach that will provide clients with the most vigorous Intellectual Property advocate available. Anthony M. Verna III is a member of the New York and New Jersey Bars, as well as the U.S. District Court Southern District of New York. He is a sought-after business speaker, including regular appearances at the World Board Gaming Championships, Business Marketing Association of New Jersey, and Columbian Lawyers Association.
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Browse Lawyers NowLawyer Reviews for New Jersey Noncompete Agreement Projects
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"Paul was stellar in every way. Highest recommendation possible; I will be continuing to partner with him. Thank you, Paul."
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"Rey pleased with Zach’s thoroughness."
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"Great to work with and very thorough in his review! Thank you!!"
Reply From Allen L.
Thank you so much — this was a meaningful engagement and I am glad the review gave you what you needed. Non-compete and severance matters in Georgia involve some nuances that can really affect your position, and I wanted to make sure you walked away with a thorough picture. Please come back anytime. -Allen
View MoreTexas Post-Employment Non-Compete & Non-Solicit Review — 4 Written Questions, Flat Fee.
"Delivered the scoped work product ahead of the agreed deadline. The memorandum was clear, well-organized, and the analysis was actionable. Texas covenant knowledge as advertised. One caution: the bid listed a deliverable that was later recharacterized, and all requests were answered with strict scope language. Ensure everything from the bid appears in the engagement letter before signing. Work quality: strong. Style: strictly transactional."
Reply From Philips V.
Thank you for taking the time to share your feedback. This engagement was a limited‑scope project focused on providing written legal analysis to the four specific questions in your bid request. You selected my bid after your clarifying questions were fully answered, and the engagement letter reflected that scope as written. The work product delivered matched the scope requested and agreed to in the engagement letter. Clear deliverables upfront make short, fixed‑fee engagements efficient and predictable, and they help ensure competitive bids are evaluated on a consistent scope. We all expect a level playing field with fixed goal posts. I am glad to hear the memorandum was clear, well organized, and actionable, and that the work quality and timeliness met your expectations. I appreciate the opportunity to assist with your Texas covenant review.
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Florida
Noncompete agreement choice of law?
I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.
Venus C.
Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.
Employment
Noncompete Agreement
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Noncompete agreement and promotions?
I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.
Thomas L.
It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.
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How to draft a noncompete agreement?
I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.
Daniel D.
Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?
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Can I work for a competitor with my current noncompete?
I have ended my non competent consulting agreement with my current employee and I have an offer to work as an employer “not as consultant” with a competitor company to my privious employees so can I work as an employee without any problem? The consultant agreement says the following: Under any circumstances the consultant shall not engage directly or indirectly either as a principal agent , consultant,stock holder , partner or in any other capacity whatsoever have any other relationship with any business which compete with the company in USA.
Jane C.
I suggest that you have an attorney review the entire agreement. It is hard to comment reading a paragraph taken out of context. From the limited facts you present, it seems that you cannot accept this job offer without violating the terms of the non-compete. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.
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Can I get out of my noncompete agreement?
I am looking at my options.
Donya G.
You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.
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