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When is it right to challenge a non-compete agreement?

On Behalf of | Oct 5, 2021 | Non-Compete Agreements

For most people, getting a new job in New Jersey is a great feeling. Unfortunately, this happiness can soon turn into anger and confusion if you receive a cease and desist letter. A company can send these letters to past employees who violated a non-compete agreement by working for another business. With that in mind, here are a few situations when you can challenge a non-compete agreement.

Skeletons in the closet

Sometimes, you won’t be the first employee that considers taking legal action against a business. There are various reasons why a company could find itself in court battles unrelated to non-compete agreements, including fraud or unlawful discrimination against employees. If this business doesn’t want another lawsuit, they could decide to not challenge a non-compete clause.

A breach of contract

Workers can also challenge non-compete agreements if an employer caused an earlier breach of contract. Examples of these violations could be a business not paying former or current employees all their due compensation.

There isn’t a legitimate business interest

A key factor in disputes related to non-compete agreements involves legitimate business interests. In most cases, companies will include something about protecting confidential information or trade secrets in their new hire paperwork. With that said, not every new employee will get exposed to legitimate business interests. If this is the case, it’s possibly worth challenging your non-compete agreement.

Unreasonable restrictions

Just because an employer creates a non-compete agreement, doesn’t mean that its terms are reasonable. For instance, a judge might throw out a case involving non-compete agreements if the employer imposed 15-year restrictions. An employer can also be guilty of unreasonable geographic restrictions.

In conclusion, non-compete agreements can get challenged in several ways. By doing this, you can help ensure your rights as a worker remain protected.