Even in the absence of a written restrictive covenant, under NJ employment law, an employee must be loyal to his or her employer while he/she is employed.  An employee cannot actively compete with his or her employer during the course of his/her current employment.  The employee may not solicit the customers, employees, or trade secrets of his current employer for other than his/her employer’s benefit.  This duty does not, however, prohibit an employee from planning to compete with his employer after their employment terminates. 

While still employed by the employer, an employee may, however, prepare to compete with his employer even to the extent of establishing a business designed to compete.  New Jersey cases have held that an employee does not have to reveal his competitive plans to the employer.  However, an employee’s rights are limited to "mere” preparation only.  This right does not extend to starting a competing business or assisting a competitor while still employed by the employer. 

Fredrick P. Niemann, Esq. understands covenants not to compete laws in NJ.  Business law in NJ can be a maze.  Knowing how to get you through it is our job.  We are NJ corporation and business law attorneys for businessmen and businesswomen throughout the state of NJ.

Contact an experienced New Jersey covenant not to compete attorney today.

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