New Rule Will Ban Most Non-Compete Provisions The Federal Trade Commission (“FTC”) has issued a new Rule that soon will ban virtually all non-compete agreements in the United States. Specifically, on April 23, 2024, the FTC issued a new Rule that deems it to be an unfair method of competition…
A non-compete agreement is a contract that prevents an employee for working for a competitor for a period of time after his or her employment relationship ends. As a general rule, New Jersey Courts enforce non-compete agreements if the employer has a legitimate interest to protect such as confidential information…
On July 26, 2019, New Jersey’s Appellate Division issued a detailed ruling regarding the non-compete and non-solicitation provisions in ADP, LLC’s stock option plan. In the process, the court provided a detailed explanation of how New Jersey courts should analyze restrictive covenants. The appeal stems from separate cases ADP filed…
Last October, I discussed a case in which the District of New Jersey issued an injunction which enforced ADP, LLC’s non-compete agreement with two of its former employees. Earlier this month, the Third Circuit Court of Appeals affirmed that ruling. Non-Compete Agreement in Online FormTerms Agreement ConceptADP claims that Jordan…
In a recent ruling in a non-compete agreement case, United Stated District Judge William J. Martini declined to lift an injunction prohibiting two former employees of ADP from soliciting the company’s clients on behalf of a competitor. Notably, however, the judge did not prohibit the employees from working for the…
Many executives and other high-level employees receive stock options, restricted stock units (RSUs) and other forms of deferred compensation as part of their compensation packages. Often, the employers who issue these forms of equity to their employees include non-compete agreements and other restrictive covenants in the stock agreements. These provisions…
The New Jersey Employment Agencies Act requires employment agencies doing business in New Jersey to register and obtain licenses from the New Jersey Division of Consumer Affairs. Agencies that fail to do so cannot file lawsuits seeking to collect fees or commissions that are owed to them, or to enforce…
A recent decision from the District of New Jersey recognizes that employers are not entitled to compensatory damages from employee who breach their non-competition agreements unless the employer can prove it would have received the income but-for the violation. The case involved Jose Munoz and Roberto Abreu, two former employees…
Last week, the United States Supreme Court overturned a state court’s ruling that a non-compete agreement is invalid because it violates state law. The Supreme Court ruled that since the non-competition agreement included a valid arbitration clause, an arbitrator has to decide whether the non-compete agreement is legally enforceable. The…
In a sluggish economy employers tend to use non-compete agreements more frequently to protect their interests. At the same time employees struggling to find a job in difficult job market are more likely to question and challenge the limitations set by their non-compete agreements. As a result, we frequently receive…