You may let out a sigh of relief when you finally get your foot in the door and start at the new job position you were eagerly hoping to be accepted for. But after a couple of weeks on the job, you may be thrown slightly off guard if your employer approaches you with a non-compete agreement. This may be especially unexpected if this was never discussed in your several rounds of interviews or disclosed in your initial employment agreement. At the same time, you may fear that neglecting to sign may put your new job status in jeopardy. Well, if you find yourself in this predicament, please read on to discover whether you will be forced to sign a non-compete agreement after starting a new job and how a seasoned employment agreement attorney in Gloucester County NJ, at The Vigilante Law Firm, P.C., can help you understand your rights.
Are non-compete agreements legal in the state of New Jersey?
For starters, a non-compete agreement is a contractual clause that may prevent an employee from working for a competitor or starting a competing business for a set period should their employment relationship with their current employer end. This type of employment agreement is mostly used to protect the current employer’s business (i.e., goodwill, trade secrets, etc). and its overall success within the industry.
With that being said, in April 2024, the Federal Trade Commission published a final rule that banned most non-compete agreements. The agreements to be banned are ones that promote “unfair methods of competition.” The exceptions to this new role are agreements signed by senior executives; agreements part of a “bona fide sale of a business entity;” agreements subject to ongoing cause of action; and agreements with a good-faith basis to believe = the rule is inapplicable.
Do I need to sign a non-compete agreement after starting a new job?
You should know that, even with the FTC’s new ruling, non-compete agreements may still be enforceable in the state of New Jersey, but only in a limited scope, as insinuated above. But if such an agreement falls within the lines of compliance, your employer may hold the legal right to ask you to sign one after starting your new job. This is because your employer may present it as a condition of your continued employment at the company.
However, on the flip side, you may exercise your right to negotiate the terms and conditions of this agreement. For example, you may ask for more reasonable limits to the set timeframes, geographic scope, and type of job for your next employment opportunity. For these negotiations, and before putting pen to paper, the presence of a legal representative may be necessary.
There is no need to remain hesitant when you have one of the competent New Jersey employment lawyers on your side and supporting you. So please inquire with us at The Vigilante Law Firm, P.C. at your earliest possible opportunity.
