Enforcing Restrictive Covenants For Employers
Whether you are an employer or an employee, you want to protect your professional interests at the end of an employment relationship. Many professional contracts include provisions to prevent employees who leave from unfairly competing with their former business and/or restricting what a former employee can do upon leaving.
The Weir Law Firm, LLC, represents employers, employees and former employees with restrictive covenants and unfair competition issues in Bridgewater and throughout New Jersey. If you are an employer, attorney Bonnie Weir has the skill and experience to protect your rights, stop the improper actions and assess the damages caused to your business.
If you are an employee or former employee, she has the knowledge to find a way to avoid or limit the restriction and determine if it is enforceable in the first place. Bonnie will also negotiate and draft the agreements that contain competition and restrictive provisions so they are fair to both employers and employees.
Understanding The Enforceability Of Restrictive Covenants
Often issues arise as to whether the contractual restrictions are enforceable. In New Jersey, a restrictive covenant must meet three general requirements in order for a court to find it enforceable:
- The covenant must protect a legitimate business interest of the employer.
- The covenant must not impose an undue hardship on the employee.
- The terms of the covenant cannot violate the public interest.
The employer has the burden of showing that the covenant is enforceable. New Jersey courts may choose to alter a restrictive covenant to make it enforceable rather than declaring the entire contract invalid.
If a former employee violates the restrictions and unfairly competes, the damage to a company could be significant. For example, the former employee could reveal an important trade secret. On the other hand, employees need to be able to reasonably pursue their careers moving forward. With over 30 years of experience, Bonnie understands the needs of the business community and can help you create a fair, enforceable contract. She can also represent your interests when disputes arise.
Discuss Your Restrictive Covenant
Existing clients please call 908-575-0185.