New Jersey Employment Lawyers Blog
New Jersey employees may soon find new freedom in the job market. On October 3, 2022, the New Jersey State Assembly held a hearing on Bill No. 3715, backed by the National Employment Lawyers Association of New Jersey (“NELA NJ”). If passed, the Bill would prevent employers from placing unreasonable limits on their workers when they leave for new employment. For New Jersey employees, this would mean more transparency in employment contracts and fewer restrictions on their ability to seek competitive employment opportunities.
Restrictive covenants, more commonly known as “non-competes,” allow employers to prevent skilled employees from seeking new employment opportunities using the skills and knowledge they rely on in their current employment. Some restrictive covenants, such as trade secret and non-solicitation agreements, are critical to a business’ survival, and would still be permitted under the new Bill. While they can serve a valuable purpose to employers, they can be easily abused to limit employment prospects for employees who want to leave a company.
Assembly Bill (No.3715), first introduced in May 2022, addresses how restrictive covenants in employment contracts and severance agreements “discourage innovation and production” by driving skilled workers to other states and “impede the development of business.” More significantly, non-competes place an undue burden on skilled employees that limit their employment.