{"id":561,"date":"2013-04-12T00:00:00","date_gmt":"2013-04-12T04:00:00","guid":{"rendered":"http:\/\/events-lindabury.blawgcloud.com\/1970\/01\/proposed-legislation-could-change-the-competitive-playing-field-in-new-jersey.html"},"modified":"2025-02-05T11:32:07","modified_gmt":"2025-02-05T16:32:07","slug":"proposed-legislation-could-change-the-competitive-playing-field-in-new-jersey","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/proposed-legislation-could-change-the-competitive-playing-field-in-new-jersey.html","title":{"rendered":"Proposed Legislation Could Change the Competitive Playing Field in New Jersey"},"content":{"rendered":"<p>New Jersey Courts have consistently enforced covenants not to compete (also known as restrictive covenants) contained within an employment agreement.\u00a0 Those covenants have traditionally been used by an employer to prevent an employee from leaving his\/her employ and immediately soliciting the employer\u2019s customers and\/or clients &#8211; &#8211; many of whom the employee would not have known except as a result of working for that particular employer.\u00a0 Those covenants have also been used to prevent an employee from leaving his\/her employment and using the employer\u2019s confidential information (such as information about the employer\u2019s pricing, margins, profits, etc.) to gain an unfair advantage in competition with the former employer.\u00a0\u00a0\u00a0 Provided that the covenants were reasonable and not simply intended to thwart fair competition, employers could be assured that their customer\/client relationships and their confidential information would be protected.<\/p>\n<p>Introduced on April 4, 2013, Assembly Bill No. 3970 could potentially change that competitive landscape in New Jersey.\u00a0 Assembly Bill No. 3970 is designated as \u201can act concerning certain employment contracts and unemployment compensation\u201d and consists of only 2 paragraphs.\u00a0 It specifically states:<\/p>\n<p style=\"margin-left: 58.5pt;\">1.An unemployed individual found to be eligible to receive\u00a0benefits pursuant to the \u201cunemployment compensation law,\u201d R.S. 43:21-1 et seq, shall not be bound by any covenant, contract, or agreement, entered into with the individual\u2019s most recent employer, not to compete, not to disclose, or not to solicit.\u00a0 This section shall not be construed to apply to any covenant, contract, or agreement in effect on or before the date of enactment \u2026<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/proposed-legislation-could-change-the-competitive-playing-field-in-new-jersey.html\"  title=\"Continue Reading Proposed Legislation Could Change the Competitive Playing Field in New Jersey\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>New Jersey Courts have consistently enforced covenants not to compete (also known as restrictive covenants) contained within an employment agreement.\u00a0 Those covenants have traditionally been used by an employer to prevent an employee from leaving his\/her employ and immediately soliciting the employer\u2019s customers and\/or clients &#8211; &#8211; many of whom the employee would not have [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65,247],"tags":[],"coauthors":[139],"class_list":["post-561","post","type-post","status-publish","format-standard","hentry","category-insights","category-labor-employment-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Proposed Legislation Could Change the Competitive Playing Field in New Jersey &#8212; April 12, 2013 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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