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Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
Under New Jersey law, non-compete agreements are only enforceable if they are reasonable with respect to the restrictions imposed on employees; however, what is deemed reasonable will vary depending upon each individual situation.
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Notably, the bill limits the length of non-compete agreements to a one-year period and requires that geographic restrictions be reasonable and limited to the geographic areas in which the employee provided services or had a material presence or influence during the two years preceding the date of termination of
Employment Agreements in New Jersey are enforceable during your employment and after your employment terminates for any reason. New Jersey employment contracts typically contain non-compete, non-solicitation and other covenants that will restrict you from competing in the future against the employer.
California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship. When a non-compete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.