Although non-compete agreements seem to get a lot more attention, non-solicitation clauses are common in both New York and New Jersey, and can impose significant limitations on you in the future. In fact, sometimes they can be so broad that they have the same impact, or an even broader impact, than a non-compete provision.
While they come in many different forms, there are two primary types of non-solicitation clauses: ones that limit your right to hire employees and ones that limit your right to do business with customers.
Limits on Your Right to Hire EmployeesOne of the most common types of non-solicitation clauses restricts your right to hire employees of your current company after you leave. In other words, they are “anti-poaching” provisions that prevent you from hiring your former coworkers, colleagues or support staff for a period of time after you leave your job.
Limits on Your Right to do Business with CustomersAnother common form of restriction prevents you from soliciting or doing business with any of your current customers or clients, or in some instances any of your current employer’s customers or clients, for a set period of time after you leave the job.
These provisions often are broad enough that they effectively prohibit you from competing with your current employer. At the very least, they can severely restrict what you can do for your next employer, and as a result can limit your future job opportunities, including by limiting your negotiating leverage with your current employer.
There are many other limitations which non-solicitation agreements can impose, such as limiting your ability to do business with vendors, suppliers, partners, affiliates or other individuals or companies that have a business relationship or other association with your former employer. While they sometimes can be relatively harmless, if they are worded too broadly these limitations have the potential to severely limit or even prevent you from performing your next job effectively.
As a result, it can be extremely important to have a New Jersey lawyer review your non-solicitation agreement before you sign it. if you have any questions, you should feel free to call our office at (201) 777-2250 to schedule a meeting with one of our New Jersey non-solicitation agreement lawyers.
Although non-solicitation agreements generally focus on what you can or cannot do after you leave your current job, they also can restrict you while you are working for your current employer. For example, they can limit your ability to prepare to join another company or open a competing business.
Likewise, the duty of loyalty imposes similar limitations while you are working for your current employer. The duty of loyalty automatically applies to every job in New Jersey or New York, whether or not you have a written employment contract or have entered into a non-solicitation agreement or another restrictive covenant.
Helping You Understand and Negotiate a Restrictive CovenantWhether you have already signed a contract that includes a non-solicitation clause, or are being asked to sign a new one, one of the New Jersey employment law attorneys at Rabner Baumgart Ben-Asher & Nirenberg, P.C., can review it, help you understand it, and explain how it limits your rights. Our lawyers also can help identify opportunities to revise or amend your agreement by reducing its scope, clarifying its terms, or otherwise making it less onerous.
If you have questions or concerns about a non-solicitation clause or another restrictive covenant, we welcome you to contact us online or to call us at (201) 777-2250 to schedule a consultation with one of our New Jersey non-solicitation agreement attorneys.
Our office is located in Bergen County at 135 Chestnut Ridge Road, Suite 230, in Montvale, New Jersey. We offer consultations in person, via Zoom and by telephone.