Legal Question in Employment Law in New Jersey

Employee Agreement Question

I'm offered employment by a new company and they have the following verbiage in their employee agreement. Please translate to plain English, or help me understand if this precludes me from taking another job at any competing co, or just accepting a position as principle/partner where I held 4.9% equity in the new company.

7. Non-Competition by Employee.: Throughout the Term of the Agreement, or if the Employee is terminated for Cause (as �Cause� is defined herein), he agrees that, for the longer of (ii) (A) the term of his or her employment by the Employer, and (B) a period of one (1) year thereafter, without Employer�s prior written consent, he will not, directly or indirectly, either as principal, agent, manager, employee, partner, shareholder, director, officer, consultant or otherwise, (I) become engaged or involved in any business (other than as less than 5% equity owner of any Company traded on any national, international or regional stock exchange or in the over-the-counter market) that competes with Employer, whether directly or indirectly; or (II) induce or attempt to induce any customer, supplier or employee of Employer to reduce, terminate, restrict or otherwise alter its business relationship with Employer


Asked on 7/10/09, 1:21 am

1 Answer from Attorneys
Randall Brett Law Office of Randall P. Brett

Re: Employee Agreement Question

This appears to be part of a non-compete agreement, where (if you signed it) you agree not to compete with your employer. However, without seeing the entire agreement I cannot tell for sure. In any event, you should have this agreement reviewed by an attorney before you sign anything as you could be giving up valuable rights. If you would like to arrange a consultation, please call my office.

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Answered on 7/11/09, 4:23 pm


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