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Employment Lawyers Clash While Lawmakers Weigh Limits on Noncompete Agreements

June 30, 2021

New Jersey Law Journal
By Charles Toutant

While New Jersey lawmakers debate measures to limit the reach of employment noncompete agreements, litigation between employers and former employees accused of violating such pacts continues to surge.

In New Jersey, a fierce battle is being fought in the solar power industry, where employers have filed at least 10 suits against employees who left to join competing companies. Meanwhile, a measure to regulate noncompete clauses, A-1650, awaits passage by the Assembly after a 6-3 vote from its Labor Committee in February.

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Louis Moffa Jr. of Montgomery McCracken Walker & Rhoads represents Sunrun and some individual defendants. He said the plaintiffs’ use of restrictive covenants is unnecessary because trade secrets already enjoy protection under the law.

“I can’t explain why this industry is so bent on restrictive covenants. The information is not particularly confidential. We’re talking about sales leads. It’s not a consultant business,” Moffa said.

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