On May 2, 2022, the New Jersey State Assembly introduced Assembly Bill (AB) 3715 that, if enacted, would significantly limit the use and enforceability of certain restrictive covenant provisions, while mandating additional procedural requirements. AB 3715 is similar to prior bills introduced in the New Jersey legislature in recent years, and part of the ongoing effort in the Garden State to drastically alter the non-compete landscape. See New Jersey General Assembly to Vote on Renewed Bill Seeking to Curb Restrictive Covenants; New Jersey Restrictive Covenant Bill Aims to Change the Landscape.
AB 3715 codifies the State’s common-law requirement that a restrictive covenant agreement must be no broader than necessary to protect the employer’s legitimate business interests, must not be unduly burdensome on the employee, and cannot be injurious to the public or inconsistent with public policy.
Significantly, the bill includes multiple additional barriers to traditional restrictive covenants that otherwise may be enforceable under current law. For example, under the bill, a restrictive covenant agreement:
must be disclosed to the employee by the earlier of a formal offer of employment or 30 business days before the commencement of employment or, if the agreement is entered into after commencement of employment, must be provided to the employee at least 30 business days before the agreement is to be effective;
must be limited to a duration of no more than...
Stay updated on the latest news and insights. Subscribe to our newsletter here The MCMC is investigating a viral video for allegedly spreading false information about the SST and income tax relie...