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For a non-compete clause to be enforceable, New Jersey courts require that the non-compete clause (1) protect the legitimate interests of the employer; (2) does not impose unreasonable harshness on the worker; and (3) is not harmful to the public. Prior to this decision, a non-competition clause, which was later deemed too broad, was rewritten by the Tribunal to bring it into line with legal standards protecting the interests of both the individual and the employer. However, in view of the Maw decision, employers may be subject to customary law and legal claims for compensation when they take adverse employment measures against a worker, either because he has not signed an agreement deemed unenforceable, or because he has not signed an agreement or has violated it. If an employee (call him “John Smith”) leaves a job where he has signed a non-compete agreement to accept a job at a new company – a job that may or may not be “taboo” under the terms of his non-compete clause – Smith may enter the “Lose Lose” area. His former employer may well decide to take Smith [and often his new company] to court to prevent him from accepting the new position. A number of bad things can happen at this point – the worst is that the new company may decide that it doesn`t want to be part of a lawsuit and that it fires Smith, so it leaves without its old job or the new one, and it`s still subject to a non-compete clause. Sometimes we could also negotiate an employee based on their non-compete clause. It is rare for a person to work only for one employer during their career. It is therefore very likely that at some point you will come across an employer who will ask you to sign a competition license agreement. Faced with this reality, we are often asked: “Can I refuse to sign a non-competition clause?” Unfortunately, if you decide not to sign a non-compete clause, a potential employer may refuse to hire you. It is also true that an existing employer can fire you if you refuse to sign a non-competition clause.

This is due to the fact that employers may require workers to sign competition agreements as a precondition for employment or job retention. . . .