Non-competition agreements give employers a degree of certainty that, after acquiring specific training and work experience knowledge, the worker will not turn around and use that knowledge to use a competitor or to compete directly with the employer. Each state has its own rules and precedents regarding the validity and application of competition agreements without competition. The case law, which is always fluid, strongly influences the interpretation of these agreements. As the labour market evolves and workers move more often from one job to another, the type of competitive activity may need to change. Non-competition agreements can have a serious impact on the way skilled workers after leaving the labour market find employment in which they have had to sign a non-compete agreement. Few American workers stay with an employer during their careers. Today`s workers often “jump” from job to job to get greater benefits, and many companies let workers go to cut costs. Over the course of his or her career, the average U.S. worker changes jobs ten to fifteen times, with an average term for each position of only 4.4 years. As a result of this trend, more and more employers are using competition bans to protect what they perceive to be corporate property.
The commission considered each of these alliances separately, since New Jersey is a “blue pencil” jurisdiction. This concept of “blue pencil” will be the subject of further debate in future articles in this series, but in general, this means that even if certain restrictive alliances imposed on internal lawyers contrace the RPCs, the rest of the contract could remain applicable if the impugned provisions could not nullify the central purpose of the agreement and be dissociated from the agreement. The creation of non-competition agreements can be a waste of time depending on the state or state in which a company operates. An employer must ensure that non-competition agreements are valid in the state in which it divests. When an employer attempts to impose a non-competition agreement, it could be held responsible for unfair business practices that would allow the worker to repay and pay legal fees.