A bill in the New Jersey Senate, Senate Bill 3518 (“SB 3518”), and an identical companion bill in the New Jersey Assembly (Assembly Bill 5261), would significantly curtail the use of non-compete agreements in New Jersey. In an article posted on our website, Cliff Atlas, Kevin Miller and Colin Thakkar analyze SB 3518 and pose key questions about the impact and wisdom of the proposed legislation. While certain recent reports have suggested that employers overuse or abuse non-compete agreements against even low-level employees, that conclusion is inconsistent with our overall experience. It is unclear how the legislature would be better equipped than the courts to combat improper use or abuse of non-compete agreements in particular cases. These and other questions will undoubtedly be addressed, and hopefully answered, during the upcoming legislative proceedings.
Members of Jackson Lewis’s Non-Competes Practice Group are prepared to help employers with New Jersey employees navigate this budding legislative initiative.