Legal Question in Business Law in New Jersey

Re: nonsolicitation/noncompete loophole?

A prudent manager would have the employee execute a second agreement. If that is not done, a court would probably still enforce the non-compete terms but there is always the possibility that a judge would see things the other way especially if there are circumstances favoring the employee in the second term.

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

Re: nonsolicitation/noncompete loophole?

I agree with John that this could go either way, as I have not seen the language nof the Agreement. Is there any language about re-hiring in the original? Technically, if there is no language stating that in the event of a re-hire the old Agreement is renewed, the employee does not have an agreement in place, that can be enforced. On the other hand, there are common law rules that might cover this situation (leaving and taking other employees with him). My suggestion is to get him to sign a new agreement ASAP and also to change the language of the existing one to cover this, so that new hirees are covered. I would even suggest that all present employees sign the new form to avoid this in the future.

Re: nonsolicitation/noncompete loophole?

You really need to have a lawyer look at the agreement, and get the full story. I have done a fair number of these type situations, and there are some hard practical issues to deal with.