All contracts are subject to scrutiny before the law, especially when a dispute arises. Employment-employer disputes are no exception. Federal and state‑specific restrictions are
now facing employers who utilize non‑compete agreements and such agreements are able to be stricken for unrelated employment issues. This is since the Appellate Division of the New
Jersey Superior Court has provided a warning to an employer had no ability to prevent its former employee from working for its direct client despite the existence of a non‑compete
agreement expressly covering that client. This was of particular concern since the employee was not paid properly by the employer during her training period. It was because the
employment and non‑compete “agreements violated federal law, they were void and unenforceable.”
This brings to light notions such as the importance of fair and just contracts, as well as, the unconscionability. If ever a contract has an abuse of power or is in favor of one party over the
other, it will violate the law. The employers must take this into consideration when drafting terms and have them reviewed by attorneys who are familiar with restrictive covenants within
the scope of employment law. Continue reading ›