New Jersey is poised to join the growing list of jurisdictions taking steps to curtail the use of restrictive covenants in employment agreements. A newly proposed bill (S4385/A5708) would impose a near-total ban on non-compete clauses—except for a narrow category of “senior executives”—and would also prohibit no-poach agreements between employers and workers. Read
New Jersey Legislature Continues Efforts to Significantly Limit Restrictive Covenants
On May 2, 2022, the New Jersey State Assembly introduced Assembly Bill (AB) 3715 that, if enacted, would significantly limit the use and enforceability of certain restrictive covenant provisions, while mandating additional procedural requirements. AB 3715 is similar to prior bills introduced in the New Jersey legislature in recent years, and part of the ongoing
New Jersey General Assembly to Vote on Renewed Bill Seeking to Curb Restrictive Covenants
New Jersey may be next up to join the growing number of states that significantly restrict the use of non-competition agreements in employment. As we discussed back in December 2017, a bill proposed in New Jersey at the time, Senate Bill 3518, would “impose significant restrictions and limitations” on the use of restrictive covenants
New Jersey Court Offers A Reminder That The Duty Of Loyalty Is Thicker Than Ink
Do employees in New Jersey owe a duty of loyalty to employers, even without a written employment agreement? Eliminating any possible doubt, the New Jersey Appellate Division answered, emphatically, yes.
In Technology Dynamics, Inc. d/b/a Nova Battery Systems v. Emerging Power, Inc. et al., Docket No. A-0952-17T3 (N.J. Sup. Ct. – App. Div. Feb.