My question involves labor and employment law for the state of: NJ
I was hired for a new position as an engineer in a medical device company. It is very small in size, and they sent me a generic Non-Compete to review and sign. This is the first time I have read one, and had the following questions.
1. Should the Non-Compete include language about physical distance from Company where the Non-Compete is active? For example, can I work in California in the same industry?
2. It says that the Non-Compete will last for a period of 12 months. Should the Agreement include a statement that says I will be paid for the 12 months I am unemployed, or is this well understood?
3. I'm not quite clear what happens if the Company is acquired by another Company.
4. Are Non-Compete's even enforced in the NYC/NJ area since there are so many companies here?
Below is a rendition of what the Non-Compete Agreement claims:
6.1 Covenant Not To Compete. During the period of the Employee’s employment by the Company and for a period of 12 months following the termination of the Employee’s employment, the Employee will not, directly or indirectly, (a) be employed by, render services or advice to, be associated or in any manner connected with or lend his or her name to any Conflicting Organization, (b) engage or invest in , promote or assist, financially or otherwise, own, manage, operate or control, or participate in the ownership, management, operation or control of, any Conflicting Organization, c) sell any Conflicting Product or solicit customers, active prospects, business or patronage for any Conflicting Organization with respect to a Conflicting Product, (d) solicit, divert, entice or otherwise take away any suppliers, customers, active prospects, business, patronage or orders of the Company or attempt to do so. For purposes of this Agreement, (I) “Conflicting Organization” means generally any person or organization engaged, directly or indirectly, in the research, development, production, marketing or selling of a Conflicting Product, and (ii) “Conflicting Product” means any product, process, or service of any person or organization other than the Company, in existence or under development, which performs similar functions or is used for the same general purposes as a product, process, or service which is the subject of research, development, production, marketing or selling activities of the Company.
9.4 Assignment. The Company may assign this Agreement, without the consent of the Employee, to another entity that acquires more than 50% of the business or assets of the Company, provided that such entity expressly assumes and agrees to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such assignment had taken place. Except as provided to the previous sentence, neither party may transfer or assign any rights or delegate any obligations hereunder, in whole or in part, whether voluntarily or by operation of law, without the prior written consent of the other party. Any purported transfer, assignment or delegation by either party without compliance with this Section will be null and void and no force or effect. This Agreement will be binding upon and inure to the benefit of the parties’ successors and lawful assigns.
Thanks for your input in advance!!
I was hired for a new position as an engineer in a medical device company. It is very small in size, and they sent me a generic Non-Compete to review and sign. This is the first time I have read one, and had the following questions.
1. Should the Non-Compete include language about physical distance from Company where the Non-Compete is active? For example, can I work in California in the same industry?
2. It says that the Non-Compete will last for a period of 12 months. Should the Agreement include a statement that says I will be paid for the 12 months I am unemployed, or is this well understood?
3. I'm not quite clear what happens if the Company is acquired by another Company.
4. Are Non-Compete's even enforced in the NYC/NJ area since there are so many companies here?
Below is a rendition of what the Non-Compete Agreement claims:
6.1 Covenant Not To Compete. During the period of the Employee’s employment by the Company and for a period of 12 months following the termination of the Employee’s employment, the Employee will not, directly or indirectly, (a) be employed by, render services or advice to, be associated or in any manner connected with or lend his or her name to any Conflicting Organization, (b) engage or invest in , promote or assist, financially or otherwise, own, manage, operate or control, or participate in the ownership, management, operation or control of, any Conflicting Organization, c) sell any Conflicting Product or solicit customers, active prospects, business or patronage for any Conflicting Organization with respect to a Conflicting Product, (d) solicit, divert, entice or otherwise take away any suppliers, customers, active prospects, business, patronage or orders of the Company or attempt to do so. For purposes of this Agreement, (I) “Conflicting Organization” means generally any person or organization engaged, directly or indirectly, in the research, development, production, marketing or selling of a Conflicting Product, and (ii) “Conflicting Product” means any product, process, or service of any person or organization other than the Company, in existence or under development, which performs similar functions or is used for the same general purposes as a product, process, or service which is the subject of research, development, production, marketing or selling activities of the Company.
9.4 Assignment. The Company may assign this Agreement, without the consent of the Employee, to another entity that acquires more than 50% of the business or assets of the Company, provided that such entity expressly assumes and agrees to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such assignment had taken place. Except as provided to the previous sentence, neither party may transfer or assign any rights or delegate any obligations hereunder, in whole or in part, whether voluntarily or by operation of law, without the prior written consent of the other party. Any purported transfer, assignment or delegation by either party without compliance with this Section will be null and void and no force or effect. This Agreement will be binding upon and inure to the benefit of the parties’ successors and lawful assigns.
Thanks for your input in advance!!
Non-Compete Agreements: Non-Compete Agreement - for Brand New Engineering Job
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