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Restrictive Covenants

New Jersey Restrictive Covenant Lawyers

Restrictive CovenantsRestrictive covenants are agreements that limit what you can do during and after your current job. They can, for example, limit where you can work, what you can say, or who you can hire. They can be included in your employment contract, offer letter, employee handbook, severance agreement, or a separate agreement.

Some of the most common forms of these restrictive covenants are described below.

Non-Compete Agreements

A non-compete agreement limits your right to work for a company that competes with your employer for a period of months or years after you leave your job. Non-compete agreements can be broad, prohibiting you from working in an entire industry for several years, or they can be narrow, limiting your ability to work for only a handful of companies for a few months. But either way, they can limit your negotiating power at your current employer and your ability to find your next job.

If you have a question or concern about a non-compete agreement, then please feel free to contact our office at (201) 777-2250 to schedule a meeting with one of our New Jersey restrictive covenant attorneys.

Non-Solicitation Agreements

A non-solicitation agreements limits your right to solicit, hire, or do business with employees, customers, vendors, suppliers or other companies or individuals who have a relationship with your current employer. While they often can be limited in scope, at times they can be written so broadly that they can have the same impact as a non-compete agreement.

Non-Disparagement Clauses

A non-disparagement clause is a provision in an agreement that requires someone not to say anything negative about another person or company, such as about their employer, whether or not the statement is true. They frequently are included in severance agreements, but they also can be found in employment contracts and other document. Since employers typically draft non-disparagement clauses with their employees, they often are unilateral, meaning they limit what you can say about your employer but do not necessarily limit what your employer can say about you.

However, under New Jersey law a non-disparagement clause cannot be so broad that it would limit an employee's right to discuss the facts of a discrimination, harassment, or related retaliation claim.  See our article: Non-Disparagement Clauses Cannot Prevent Employees from Discussing Discrimination.

Trade Secret Agreements

A trade secret agreement limits your right to use a trade secret or other intellectual property belonging to your employer. They also can include provisions specifying whether you or your employer owns any inventions, creations, or other intellectual property you develop while you are one of its employees.

There are many restrictions on your right to use your company’s trade secrets or confidential information even without a written agreement. For more information, you might be interested in reading the following article authored by one of our New Jersey restrictive covenant lawyers: New Jersey Passes Trade Secrets Act.

Confidentiality Provisions

Many employment contracts contain confidentiality clauses that limit your right to discuss certain information. For example, they might restrict your right to use or discuss customer lists, pricing information, financial information, or other confidential and proprietary information with a competitor or others outside of your job.

The Duty of Loyalty

Although it is not a restrictive covenant, the duty of loyalty is similar in that it imposes limits on what you can do while you are working for a company in New Jersey and New York. For instance, it limits your ability to compete with your current employer or to take other actions that are harmful to its business.

Contact Us Regarding Your Restrictive Covenant

If you are negotiating the language of a non-compete agreement, deciding whether you should sign an agreement that includes non-solicitation provision, or making sure you are not violating a restrictive covenant you already signed, it can be very helpful to speak to an experienced employment attorney. Our New Jersey restrictive covenant attorneys are experienced at representing clients regarding a wide variety of issues.

If you would like to schedule a consultation with us, then please feel free to either contact us online, or call us at (202) 777-2250. Our address is 135 Chestnut Ridge Road, Suite 230, in Montvale, New Jersey.

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