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Are Non-compete Agreements Enforceable?

If you are thinking about moving on from your company and have seen an advertisement for a position at a competing business, you might think that you would be a great choice for the job.

You may be hesitant to apply for the position because you signed a non-compete agreement with your current company. When you signed the agreement, you likely did not think too much about it.

You may have heard that these types of agreements are usually unenforceable, but you may not know whether or not you should take the risk. If you have questions about the enforceability of your non-compete agreement, it may be best to talk to the experienced employment lawyers at Swartz Swidler before you act.

What are non-compete agreements?

Non-compete agreements might contain a number of different conditions and terms.

Many of these agreements forbid workers from working for their competitors for a specific duration after they leave their jobs, regardless of whether they left voluntarily or were terminated.

Schedule an appointment today. Call (856) 685-7420 or

Schedule an appointment today.
Call (856) 685-7420 or

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.

Most Frequently Asked Question: Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is to contact one of our attorneys. For more information check out the FAQ below or visit our FAQ Page

Most Frequently Asked Question:
Do I Have A Case?

While it is true that every case is different, The law is pretty clear in most cases. The best way to determine if you have a case is contact one of our attorneys. For more information on a just a few scenarios checkout the flip box FAQ below or visit our FAQ Page.

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Phone: (856) 685-7420
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Phone: (215) 995-2733

Our Locations

Haddonfield Headquarters

9 Tanner Street, Ste. 101
Haddonfield, NJ 08033

Phone: (856) 685-7420
Fax: (856) 685-7417

 

Philadelphia Satellite Office

123 South 22nd Street
Philadelphia, PA 19107

Phone: (215) 995-2733