As any employment practitioner is aware, the granting of injunctive relief with respect to the enforcement of a restrictive covenant is far from automatic. Thus, it is critically important that the corporate practitioner draft a restrictive covenant to reflect the requirements set forth in New Jersey Law if there is to be any chance of later enforceability. Restrictive covenants with certain parameters, for example, between two and five years, and less than 20 miles are generally enforceable. Most others are generally too broad to be enforceable depending on the industry and circumstances.
Restrictive covenants now affect almost every phase of life in the business world. They are often linked to confidentiality, intellectual property and trade secret agreements, as well. Generally to be enforceable, restrictive covenants cannot be too restrictive. They cannot be so broad as to create a scintilla of doubt as to their enforceability. It is better to have a restrictive covenant of fewer years and a narrower geographic area, and have it enforceable, than to have a broader restrictive covenant which will not be upheld by the courts.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
