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Non-Competes & Restrictive Covenants

NON-COMPETES & RESTRICTIVE COVENANTS

The attorneys at BLN have extensive experience representing both employees and employers in non-compete litigation, as well as in the negotiation and review of non-compete, non-solicitation, non-disclosure and confidentiality agreements, which commonly are referred to as restrictive covenants. Non-Compete And Restrictive Covenant provisions contained in employment contracts generally restrict an employee’s ability to work for a competitor following the end of the employment relationship for a period of time. In other cases, the agreement may prohibit the employee from soliciting or doing business with the former employer’s customers, vendors, or employees. Contrary to popular myth, Non-Compete And Restrictive Covenant agreements can be enforced under many circumstances, provided that the agreement meets legal requirements and is reasonable in scope. Before signing a non-compete or restrictive covenant agreement, or considering breaking such an agreement, you should seek legal counsel. Under New York and New Jersey law, generally speaking, for a non-compete agreement to be enforceable, the agreement must:

  • be supported by adequate legal consideration (i.e., provide the employee with something of value in exchange, such as the initial job offer or a subsequent raise, promotion, or bonus)
  • serve a legitimate employer interest (such as protecting confidential information, trade secrets, or customer goodwill)
  • be reasonable in scope, duration, and geography

BLN regularly assists employees and employers with interpreting Non-Compete And Restrictive Covenant agreements. By understanding the scope and limits of the agreement, the employee can make an informed decision about employment and career options.

In addition to reviewing and negotiating the terms of Non-Compete And Restrictive Covenant agreements, BLN represents employees and employers in the defense of lawsuits alleging breach of a Non-Compete And Restrictive Covenant agreements or misappropriation of trade secrets. Often, such lawsuits involve an emergency motion for Temporary Restraining Order (TRO). If you have received a “cease and desist letter,” or have been served with a lawsuit seeking a TRO, it is important that you act swiftly to protect your rights. The judge may be asked to make important decisions about whether to impose an injunction against you to prohibit your competition in the first 24, 48, or 72 hours of the lawsuit. While many of BLN’s clients in this area are employees, BLN also works with employers to draft effective, reasonable, and enforceable Non-Compete And Restrictive Covenant agreements that protect the employer’s legitimate interests while not unreasonably interfering with the employee’s right to earn a living. By instituting narrowly-tailored non-compete, non-solicitation and non-disclosure provisions, an employer can protect its confidential information and customer goodwill.

If you have questions about non-compete, non-solicitation, non-disclosure or restrictive covenant agreements, the attorneys of BLN would welcome the opportunity to consult with you.


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