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new jersey state flagOn May 2, 2022, the New Jersey Legislature introduced Bill A3715, adding to the growing number of states seeking to curtail the use of non-compete and non-solicitation agreements by employers. While passage of the bill is uncertain, A3715, if enacted in its current form, would make New Jersey one of the most inhospitable forums for employers seeking to enforce such agreements. Among a number of sweeping changes, including outright banning the use of post-employment restrictive covenants against a broad range of workers and otherwise limiting their duration to a maximum of 12 months, the proposed law further requires employers to pay 100 percent of the separated employee’s wages and benefits during the duration of the restricted period.

Key features of the bill include:
Continue Reading New Jersey Introduces Proposed Legislation Limiting Use and Enforceability of Non-Compete and Non-Solicitation Agreements

Seyfarth Synopsis: The New Jersey Legislature recently passed Senate Bill 121 affecting claims of discrimination, harassment, and retaliation, which if signed into law, would render any prospective waiver of rights against public policy, including pre-dispute mandatory arbitration agreements. In addition, non-disclosure provisions in settlement agreements involving these  claims would be unenforceable against employees. 

On January 31, 2019, the New Jersey Legislature passed Senate Bill 121, which would prohibit employers from enforcing, among other things, mandatory pre-dispute arbitration and non-disclosure provisions in settlement agreements for claims of discrimination, retaliation, and harassment.  The bill seemingly does not affect existing waivers or non-disclosure agreements (“NDAs”).  Governor Phil Murphy has not commented publicly as to whether he will sign the bill into law.  If signed, the breadth of this law would surpass any similar law in the country.

Continue Reading Pre-Dispute Arbitration Agreements and Non-Disclosure Provisions on the Chopping Block in New Jersey

The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s Office, and as reported by NPR.  In a July 9, 2018 letter, the Attorneys General for New Jersey, Massachusetts, California, Washington, D.C., Illinois, Maryland, Minnesota, New York, Oregon, Pennsylvania, and Rhode Island requested information from eight fast food companies about their alleged use of such provisions.  The letter states that the Attorneys General “have learned that certain franchise agreements used in our States and the District of Columbia . . . may contain provisions that impact some employees’ ability to obtain higher paying or more attractive positions with a different franchisee.”  In other words, the agreements purportedly prohibit one franchisee of a particular brand from hiring employees of another franchisee of the same brand.  
Continue Reading State Attorneys General Investigate Fast Food Franchisor “No Poach” Agreements

shutterstock_345216839Touzot was an employee of ROM, a seller of products used in making balsa wood model planes and boats.  His employment agreement included a post-termination customer non-solicitation covenant.  After he left ROM, he became a competitor.  The company sued him and his Ecuadorian supplier of balsa wood, which previously had been ROM’s supplier, alleging that they were colluding to steal…
Continue Reading Despite Evidence That Ex-Employee Violated Customer Non-Solicitation Covenant, Injunction Denied Because No “Irreparable” Harm

shutterstock_295640804By Christopher Lowe and Robert T. Szyba

In a recent ruling, the New Jersey Supreme Court gave employers a great recourse for dealing with former employees who breach their duty of loyalty.  In Bruce Kaye v. Alan P. Rosefielde, the Court allowed an employer to recover compensation paid to a disloyal, recently terminated, employee, even where the employer sustained…
Continue Reading Getting Your Money Back: New Jersey Employers Can Disgorge A Disloyal Employee’s Salary

An employment agreement non-competition provision stated that, for 18 months after termination, the employee shall not become employed by or act “directly or indirectly, as an advisor, consultant, or salesperson for, or become financially interested, directly or indirectly, [in an entity] engaged in the business of selling flavor materials.” Earlier this month, the North Carolina Court of Appeals held that…
Continue Reading Beware: Over-Inclusive Non-Compete Agreement May Be Unenforceable

By Robert Milligan and Joshua Salinas

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2013. Please join us for our complimentary webinar on March 6, 2014, at 10:00 a.m. P.S.T., where we will discuss them in greater detail. As with all …
Continue Reading Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013

Following a growing recent national trend, Judge Martini of the District Court of New Jersey issued summary judgment to Defendants Monmouth-Ocean Hospital Service Corporation (“MONOC”) and two of its senior management employees on August 20, 2013, in a claim brought by a former nurse and EMT, Deborah Ehling, who accused MONOC of retaliation and other claims. 

Ehling’s claims, in part, …
Continue Reading District Court of New Jersey Continues Growing National Trend Permitting Employers to View “Publicly” Available Social Media Posts

A New Jersey district court judge recently declined to dismiss trade secret claims against the Weather Channel, finding that the plaintiff Events Media Network Inc. (“EMNI”) had alleged sufficient facts to state a claim of trade secret misappropriation under the Georgia Trade Secrets Act. 

The parties first entered into a licensing agreement in the spring of 2008.  EMNI agreed that …
Continue Reading Are Sunny Skies Ahead for Plaintiff After Clearing An Early Hurdle in A Trade Secret Case Involving Weather Service?