What Is A Covenant Not To Compete In New Jersey?

Generally speaking, in New Jersey, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors upon leaving the company. Such agreements are also known by the term "non-compete clauses". An employee who signs a covenant not to compete may receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.

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When are Covenants not to Compete Unenforceable?

Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. While employer's interest are significant, the courts of New Jersey also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Toms River that are unreasonably large.

Covenants not to compete are also required to deal only with competitors who are rationally related to the employer's line of industry. Finally, the covenant not to compete must have a legitimate business purpose which is behind the employer's motivation for requiring the agreement.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Since covenants could restrict your rights, you may wish to hire a Toms River, New Jersey lawyer to review any documents. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.

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Life in Toms River

Toms River underwent a name change in November of 2006.  Prior to being called Toms River, the city was called the Township of Dover.  As of 2010, the city has a population of 91,239 people. 

The city is known because in 2006 it was ranked fourteenth amongst the Safest City in the U.S. by Morgan Quitno.  Three hundred and sixty-nine cities were surveyed.  CQ Press, in 2007 and 2008 also ranked Toms River in their Safest Cities list. 

Toms River has been pictured in popular television shows such as MTV's Made and Jersey Shore, as well as Boardwalk Empire on HBO.  It has also been pictured in the popular film The Amityville Horror. 

The area is home to many attorneys who have established well-respected practices.  Therefore, the legal inquiries of residents and local businesses can easily be handled by Toms River's legal force. 

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