VAZQUEZ HELDMAN
  • Home
  • Areas of Practice
    • Business Law & Litigation
    • Construction, Real Estate & Development
    • Healthcare and Pharmacy Law
    • Wills, Trusts, Estates and Administration
  • Contact
  • Blog and Legal Updates

Legal Updates

Non-Compete/Non-Solicitation Provisions Upheld, but Weakened

9/23/2019

 
​The Appellate Division recently ruled on Restrictive Covenant Agreements ("RCAs"). These agreements are also known as non-competes or non-solicitation agreements. The first step in any of these types of cases is for the business to prove that it has a legitimate business interest in having a restrictive covenant with its employee or ex-employee. In ADP v. Kusins, et. al., the business cleared the first hurdle.   In the business' RCA, it prevented ex-employees, "from soliciting any actual or prospective … client, regardless of the employee's geographical location or personal contact with the client, for a twelve-month period after termination." The Court here found these restrictions were too broad.  However, the court did not void the entire RCZ, but instead curtailed the terms of the restrictions.
 
First, the court allowed ex-employees to be prohibited from soliciting any "actual clients" whom they had prior contact with while at the former business.  Second, the court only permitted restricting solicitation of prospective clients, "if the employee gained knowledge of the potential client while at ADP and directly or indirectly, solicits that client after leaving."  Third, with regard to the non-competition portion of the RCA, the Court found a business could, "restrict its former employees, for a reasonable time, from providing services to a competing business in the same geographical territory in which the employee operated while at ADP." The Court did not define what a "reasonable time" meant but in the particular RCA before the court, the length of the restriction was 12 months.  (ADP v. Kusins, et. al.)

Comments are closed.

    Authors

    Peter J. Vazquez, Jr.
    Jeffrey Heldman

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    August 2022
    April 2022
    March 2022
    February 2022
    January 2022
    July 2021
    April 2021
    March 2021
    February 2021
    December 2020
    June 2020
    May 2020
    April 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019

    Categories

    All
    Business Law
    Construction Law
    Consumer Fraud Act
    Healthcare Law
    Land Use & Zoning
    Real Estate Law

    RSS Feed

Peter J. Vazquez, Jr.
pvazquez@vazquezfirm.com

Office Phone
973-434-7062

Jeffrey Heldman
jheldman@vazquezfirm.com

​Copyright © 2017-2023    ​
  • Home
  • Areas of Practice
    • Business Law & Litigation
    • Construction, Real Estate & Development
    • Healthcare and Pharmacy Law
    • Wills, Trusts, Estates and Administration
  • Contact
  • Blog and Legal Updates