Non-compete agreements can significantly impact your ability to earn a living after leaving a job. Whether presented at the start of employment or included in a severance package, these restrictive covenants deserve careful legal review. Before agreeing to any limitations on your future employment, it is wise to consult an experienced Employment Lawyer who understands how New Jersey courts evaluate these agreements.
Castronovo & McKinney, LLC focuses exclusively on employment law and advises employees and businesses throughout New Jersey on non-compete disputes. The firm works to ensure that restrictive agreements are fair, reasonable, and legally enforceable.
What Is a Non-Compete Agreement?
A non-compete agreement is a contractual provision that restricts an employee’s ability to work for competitors or start a competing business for a specified period of time after employment ends. These agreements often define:
- The geographic area covered by the restriction
- The duration of the restriction
- The types of work or industries prohibited
- Confidential information protections
While employers have legitimate interests in protecting trade secrets and client relationships, those interests must be balanced against an employee’s right to pursue their livelihood.
How New Jersey Courts Evaluate Non-Competes
New Jersey courts generally enforce non-compete agreements only if they are reasonable and protect legitimate business interests. To determine enforceability, courts typically consider:
- Whether the restriction protects confidential information or customer relationships
- Whether the geographic scope is reasonable
- Whether the duration is appropriate
- Whether enforcement would cause undue hardship to the employee
- Whether the restriction harms the public interest
If a non-compete is overly broad, a court may modify—or in some cases refuse to enforce—the agreement.
Common Issues with Non-Compete Agreements
Employees frequently encounter non-compete clauses that:
- Extend beyond a reasonable time period
- Cover overly broad geographic areas
- Restrict work in unrelated industries
- Are presented without adequate opportunity for review
In some cases, non-compete provisions are embedded within broader employment or severance agreements. Signing without proper review may unintentionally limit future opportunities.
Castronovo & McKinney carefully reviews the language of restrictive covenants to determine whether they comply with New Jersey law and whether negotiation or legal challenge is appropriate.
Non-Competes in Severance Agreements
Employers sometimes introduce or expand non-compete provisions at the time of termination. Employees may feel pressured to accept these terms in exchange for severance pay.
Before agreeing to post-employment restrictions, it is important to assess whether the compensation offered justifies the limitation on future work. In many cases, terms can be negotiated to narrow the geographic scope, reduce duration, or clarify prohibited activities.
Legal Remedies and Defense Strategies
If an employer attempts to enforce an unreasonable non-compete agreement, employees may have grounds to challenge the restriction in court. Conversely, businesses seeking to protect legitimate interests must ensure their agreements are carefully drafted and enforceable.
Castronovo & McKinney represents both employees defending against enforcement actions and businesses seeking guidance on drafting compliant agreements. The firm approaches each matter strategically, aiming for efficient resolution while remaining prepared to litigate if necessary.
Why Early Legal Guidance Matters
Non-compete disputes can escalate quickly, especially when a new employment opportunity is at stake. Acting promptly allows employees to assess risks, explore negotiation options, and avoid unnecessary litigation.
Castronovo & McKinney serves clients throughout Bergen County, Essex County, Middlesex County, Morris County, and surrounding communities. With a focused employment law practice, the firm provides practical advice tailored to each client’s professional goals.
Contact Castronovo & McKinney, LLC
If you are asked to sign a non-compete agreement or are facing enforcement of a restrictive covenant, seek experienced legal guidance before taking action.
Castronovo & McKinney, LLC
71 Maple Ave
Morristown, NJ 07960
Phone: 973-920-7888
Email: [email protected]
Hours: Monday–Friday, 9:00 AM – 6:00 PM
Schedule a consultation to review your agreement and protect your career path moving forward.
