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Total Articles: 6

New Jersey Restrictive Covenant Bill Aims to Change the Landscape

Providing a private right of action and barring judicial modification are just two features of a bill that aims to severely limit the use of non-compete agreements in New Jersey.

New Jersey High Court Clarifies Disgorgement as Remedy for Breach of Duty of Loyalty

The absence of actual economic loss to an employer as a result of an employee’s breach of the duty of loyalty does not preclude the employer from being awarded the equitable remedy of disgorgement, a unanimous New Jersey Supreme Court has ruled. Kaye v. Rosefielde, No. A-93-13 (Sept. 22, 2015).

Appellate Decision Teaches New Jersey Employees How To Remove Confidential Documents and Trade Secrets from Employers

Executive Summary: Like the hit show "How to Get Away with Murder," the recent New Jersey ruling in Spencer Sav. Bank SLA v. McGrover (App. Div. March 5, 2015), instructs employees looking to remove their employers' confidential documents and trade secrets. While still employed with Spencer Savings Bank, loan officer Michael McGrover admitted taking company documents and transmitting them his new employer. The appellate court nonetheless confirmed that McGrover breached no duty of loyalty to Spencer because the "competing rights of the employee" outweighed Spencer's right to safeguard its confidential documents.

Legal Alert: New Jersey Bill Would Limit Enforceability of Post-Employment Covenants

Executive Summary: New Jersey legislators have proposed making a variety of post-employment restrictive covenants unenforceable where the employee is eligible for unemployment benefits. Many high-level sales employees and employees with specialized technical knowledge are subject to such restrictions, which range from limiting competition with a former employer to prohibiting disclosure of trade secrets and confidential information learned during employment.

The Ostrich Approach to Recruiting Employees? It Might Fly in New Jersey.

In a recent decision, the Supreme Court of New Jersey considered whether an employer has an independent duty to inquire into the source or ownership of a newly hired employee’s customer list. Surprisingly, the answer is “no.”

New Jersey Governor Signs Trade Secret Statute Into Law

Following the lead of 46 other states and the District of Columbia, New Jersey Governor Chris Christie has signed into law a trade secret statute modeled after the Uniform Trade Secrets Act. The statute provides owners of trade secrets with a civil claim for trade secret misappropriation, and several important remedies. It also specifies certain defenses that may not be asserted by trade secret defendants and sets forth procedures to be followed by courts in trade secret litigation.