Legal Question in Employment Law in New Jersey

Non-Complete Clause legal/enforceable?

I recently received an offer from a company and accepted it but when I gave my two weeks notice my current employer stated there is a non-compete clause in my employment offer (below is wording from offer letter, XXXX is substituted for my current company's name):

''Be aware of that it is XXXX policy that you are not allowed to be employed directly or indirectly by XXXX clients, within one year during your employment with XXXX, unless the placement is done by XXXX.

''

The company I received an offer from turns out is a client of theirs, but I never worked on projects related to them, never met anyone that they worked with and I don't even know if they are a current client or just one they worked with historically.

My wife works for the company I received the offer from and she is the one that submitted my resume to them. Is my current employers clause even legal and/or enforceable?


Asked on 9/26/08, 3:34 pm

1 Answer from Attorneys
Fred Shahrooz Scampato Law Office of Fred Shahrooz Scampato

Re: Non-Complete Clause legal/enforceable?

This is an issue that you ought to retain an attorney for. It is not something that you should attempt to understand solely from information obtained online. That being said, here is a general summary of non-competition clauses:

Generally speaking, non-compete clauses are enforceable under the right circusmstances. Courts have traditionally frowned upon restrictions placed by employers on their employees' right to find and make a living. However, courts will enforce non-competition agreements if: (1) the employer proves that it has a legitimate business interest to protect by restricting its employees' right to compete against it; (2) the restriction on the employee's right to compete is no greater than that necessary to protect the employer's business interest; and (3) the covenant not to compete is supported by consideration, meaning that the employee received something in exchange for it.

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Answered on 9/26/08, 3:59 pm


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