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As a threshold matter, the law explicitly bans the use of non-competes altogether for nine categories of employees; 1) those who are 'non-exempt' under the Fair Labor Standards Act; 2) seasonal or temporary workers; 3) employees who were laid off or terminated without good cause; 4) low-wage employees; 5) undergraduate ...
Last week, the New Jersey Assembly's Labor Committee passed bill A3715, designed to sharply limit the available provisions, use, and enforceability of restrictive covenants in employment contracts by New Jersey employers.
Overall, non-compete agreements can be enforceable in Texas, but they must be reasonable and designed to protect the employer's legitimate business interests. It's also worth noting that certain professions are exempt from the Texas non-compete law, including physicians, attorneys, and licensed clinical social workers.
Noncompete agreements are disfavored in Louisiana because those agreements tend to prevent an individual from ?exercising a lawful profession, trade or business of any kind.? Because of this, noncompete contracts in Louisiana are unenforceable unless they meet the strict exceptions provided for by Louisiana law.
California Business and Professions Code section 16600 provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is void, subject to limited exceptions. So ?non-compete? agreements are not enforceable in California.
New Jersey is sometimes referred to as a ?blue pencil state? for restrictive covenants. In effect, this means that courts in New Jersey can modify the terms of a restrictive covenant to make them reasonable and enforceable instead of invalidating them altogether.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
For a non-compete agreement to be enforceable, New Jersey courts require that the non-compete agreement (1) protects the legitimate interests of the employer; (2) does not impose an undue hardship on the employee; and (3) is not injurious to the public.