Create a New Jersey Non-Compete Agreement with our customizable template!
A non-compete agreement in the State of New Jersey is a type of employment contract relying on restrictive covenants. Companies use this document to protect their trade secrets and other legitimate interests from former employees who may leak sensitive information post-employment. Non-competition agreements restrict the actions of employees after their employment relationship comes to an end. Employers do this by forbidding individuals from working with competitors for a given time after employment and refraining from working for similar companies within a certain geographic area.
A non-competition agreement can stand on its own as a contract. It may also be part of a set of employment contracts, including a non-disclosure agreement and a non-solicitation agreement. In some instances, an employment agreement may include a non-compete clause.
Before drafting a non-compete agreement, an employer may find that it's prudent to seek legal advice from a law firm that practices employment law. An attorney-client relationship can help employers determine the enforceability of the document in the event that the former employee would need to be sued in New Jersey courts. Employment attorneys are an asset when it comes to protecting the legitimate interests of the employer. There are many factors that the courts will consider, although there isn't a single New Jersey law that governs these types of agreements. However, to protect the business from other competing businesses and ensure that public policy is protected, an employer may choose to seek the services of an employment lawyer.
Hiring an independent contractor to work for your New Jersey business? Download an independent contractor agreement form now!
New Jersey courts require that the non-competes of former employers do not:
Although New Jersey doesn’t have any specific laws that enforce non-compete agreements, N.J.A.C. 13:42-10.16 dictates that licensed psychologists and in-house counsel may not enter into non-compete agreements. Furthermore, these agreements are to be fair in their scope and geographic limitations.
Protect your New Jersey business by also using a New Jersey non-disclosure agreement form. Download a New Jersey non-disclosure agreement form now!
To write a New Jersey non-compete agreement, remember to write it in a way that keeps everything in a reasonable nature that protects only what is considered confidential business information. Include the following clauses in the non-compete agreement:
The two parties must sign and print their names. The signatures must be dated. Each party should receive a copy of the executed agreement for their records.
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