The Fate of Non-Compete Agreements in New Jersey Remains Unknown

Labor and employment associate Alexa Miller authored an article for the New Jersey Law Journal that highlights how New Jersey may become the latest state to join the growing trend of states enacting legislation to limit the use of common restrictive covenants, such as non-compete and non-solicitation agreements.

Miller explains that, if passed, Assembly Bill 3715 would significantly impact employers’ ability to enforce non-compete agreements and impose significant obligations aimed at deterring employers from entering into such agreements. Miller details the potential impacts of the bill, such as the statutory exclusion of certain workers, factors used to determine the reasonableness of restrictions, mandatory notice periods, and more.

Lastly, she notes that employers should stay abreast of A3715’s advancement in the legislature and, if passed, be prepared to take additional measures to ensure that any non-compete agreements entered into after the bill becomes law comply with the provisions outlined above to preserve enforceability.

The full article is available for New Jersey Law Journal subscribers.