Also called restrictive covenants, non-competes may contain provisions that bar workers from disclosing confidential information or trade secrets or from soliciting the employer’s clients. Some also contain language preventing former employees from attempting to entice their former coworkers to get new positions at other businesses. Often, restrictive covenants are found within the employment contracts. In some cases, they may be separate, however.

Are non-compete agreements enforceable?

While the enforceability of restrictive covenants differs depending on the state, they are enforceable in both New Jersey and Pennsylvania in certain situations. If these agreements are overly broad, they may be disregarded by the courts.

In Pennsylvania, a non-compete agreement may be considered to be overly broad if it unreasonably prevents a worker from finding employment after his or her termination in his or her career field.

In New Jersey, courts may find that the agreements are unenforceable if they place undue hardships on the workers, injure the public or do not serve any legitimate interest of the employer. This means that courts in both states will view non-compete agreements critically.

In order to be enforceable, the agreements must meet the following three guidelines:

• They must serve the legitimate interests of the employer;
• They must not place undue hardships on the employee; and
• They must not injure the public.

The courts may look at the length of time that the non-compete agreement would be valid and the geographic region that it covers in order to determine whether or not the employee would face an undue hardship.

Contact Swartz Swidler

Whether or not your non-compete agreement is enforceable may require a complex analysis that depends on the language of your agreement and your employment status. Contact Swartz Swidler to schedule a consultation so that you can learn more about your rights.