Legal Question in Business Law in New Jersey

Non-compete agreement

I am in a senior sales position with a firm, and being told to sign a non-compete document. This is a two-year old company and I brought over 95% of my current customers with me and can document that. I reside in New Jersey and am employed by a California based LLC. I think that they are in the process of selling the firm and want this non-compete in place as a condition of the sale. Is this non-compete enforceable?


Asked on 5/31/07, 6:51 pm

4 Answers from Attorneys

Daniel Pepper Pepper Law Group, LLC

Re: Non-compete agreement

It's complex. California law prohibits the use of non-compete agreements, and they are by default, unenforceable. As an out-of-state employee, however, you would have to file suit IN California to invalidate the agreement. If you refused to sign it, and your company wanted to enforce it, they would have to do so by filing suit in NJ, where non-competes ARE enforceable. Bottom line, it becomes a race to the courthouse.

Depending on the effect this non-compete would have on you (and based on your post, it would be significant), you may want to consider this option. Please feel free to contact my office to discuss further.

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Answered on 6/01/07, 9:24 am
Robert Davies The Davies Law Firm, P.A.

Re: Non-compete agreement

I have read what both attorneys wrote. I think they miss the mark. Sorry, John (he is a good guy).

You are betting your life on this. If you are wrong, then all of your customers go to them. You absolutely need to find an attorney NOW who does a lot of commercial law and handles this type of problem. Get an attorney who does this.

I do NOT do this law, not at the level of expertise you need. I have a friend in a large local (in Bergen County) lawfirm who is an absolute expert on this, gives lectures, fights over noncompete contracts a lot. Contact me, and I will put you in touch with him. This bulletin board prohibits me from putting anyone's telephone number here. My friend's name is Ed D'Alessio, Esq., of Winne Banta, of Hackensack.

Get a lawyer. Please.

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Answered on 6/01/07, 10:02 am
Walter LeVine Walter D. LeVine, Esq.

Re: Non-compete agreement

Likewise to the other authors, I have frequently been invloved in these agreements, for both employers and employees. While I cannot pass upon CA law, they are enforeceable in NJ, with a Court having the right to modify them, not render them void, if the terms are unreasonable. I strongly suggest you have the document rebiewed by an attorney familiar with these matters, before you consider signing it. Many times these types of agreements are needed when the business is to be sold, so you may be creating an exposure for yourself if that is the case and you refuse to sign one. Likewise, many times the terms of the agreement can be negotiated, and you might need the assistance of an attorney in this regard. Contact me personally if you need any help, as I have not seen what you have been asked to sign.

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Answered on 6/01/07, 1:41 pm
John Corbett Corbett Law Firm LLC

Re: Non-compete agreement

There are one or two technical defenses that might be available to you but your best course of action is to assume that the agreement is enforceable. I think that you may be better off to negotiate terms that are acceptable to you. I have done a few of these on both sides of the aisle. If you want some help, give a call.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 5/31/07, 7:04 pm


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