Employment agreements are commonplace in a wide range of industries and are valuable in establishing expectations of the employee and employer at the outset of their relationship. Such agreements typically address a variety of issues, including compensation, benefits and post-employment non-competition and non-solicitation, among other things. Frequently, these agreements also include dispute resolution provisions, such as choice-of-law clauses.

New Jersey courts, as a matter of public policy, have developed limitations on the interpretation and enforceability of choice-of-law clauses in employment agreements in order to prevent employees from losing the valuable protections of state employment statutes. This article explores the scrutiny applied by New Jersey courts to such clauses, and highlights the critical importance of the parties’ understanding of the legal landscape in structuring their relationship and in any subsequent litigation between them.