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Legislation seeking to curtail the use of restrictive covenants in the employment context is sweeping the nation, and New Jersey may be the next state taking action to limit employers’ use of non-competition and non-solicitation agreements.
In May, the New Jersey General Assembly’s Labor Committee voted in favor of Assembly Bill 3715 (A3715). If passed, A3715 would represent a profound change for New Jersey employers. The bill would immediately impose some of the most stringent procedural requirements on New Jersey employers seeking to restrict their employees’ post-employment activities, limit the permissible scope and enforceability of certain restrictive covenants, and greatly increase the associated costs of enforcing restrictive covenants against former employees.
