New Jersey Non-Solicitation Agreement

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Updated December 06, 2022

A New Jersey non-solicitation agreement is a contract that regulates the rights of a former employee or business seller to solicit a company’s clients, contractors, customers, and other employees. It can also make limitations about the former employee or seller going to work with or for a direct competitor. This agreement can be an addendum to an employment or severance contract. If it stands alone, it may also include non-compete and non-disclosure clauses.

Is It Legally Enforceable in New Jersey?

Yes but only if the restrictions it sets reasonably protect the business’s legitimate interests, are not damaging to the public interest, and don’t force any improper difficulties on an employee.

(Solari [Industries, Inc. v. Malady, 55 N.J. 571, 264 A.2d 53 (N.J. 1970)])

Table of Contents

What Types of Solicitation Can Be Prohibited?

A non-solicitation agreement in New Jersey can restrict an individual from contacting, soliciting, recruiting, or hiring a business’s:

  • Clients and customers
  • Former or current employees
  • Independent contractors
  • Business associates, suppliers, etc.

What Should Be Included in the Agreement?

In order to be enforceable in a court of law, it is recommended that a non-solicitation agreement includes the following sections:

1. Duration

This determines how long the individual is bound to the terms of the restrictive covenant. While New Jersey does not have any statutes or case law dictating the maximum length of time allowed, the set duration should be considered reasonable to protect the business’s interests while balancing the interests of the employee and the public.

2. Geographical Limit

A geographical limit is set to a specific area or location where the individual is bound by the terms of the agreement. Typically, the limit is set to the city or county where the employer or business is located.

3. Scope of Restricted Activities

This section defines the exact activities that the individual is prohibited from engaging in as part of the agreement. This can range from hiring or recruiting the employer’s employees to soliciting any former or current clients.

Related Forms


New Jersey Non-Compete Agreement

Download: Adobe PDF, MS Word, OpenDocument

 

 

 


New Jersey Non-Disclosure Agreement

Download: Adobe PDF, MS Word, OpenDocument