NJ/NYC - Non-compete agreement

[lalisaurusrex]

What is the name of your state (only U.S. law)? NJ

I work for a small tech company based in NJ with clients in both NJ/NYC. I signed a pretty ridiculous noncompete agreement two years ago and am shaking in my shoes trying to find a new job. It says I can't work for one year in any capacity in the following:
1) Own, manage, operate, control, be employed by, consult for, participate in, render services for, or be connected with any business in competition with [Company] on behalf of any entity or any division, segment, or subsidiary of such entity that has derived at least 5% of its income from the business of [Company]
2) No work with clients or prospective clients
3) No soliciting clients or soliciting current employees to leave the company

Here's the kicker though: they define "business" as "the provision of information technology-related products or services, including but not limited to, network support, network security, computer programming, website development or administration, cloud integration services and VoIP phone services."

This is a pretty all-encompassing definition that seems like it would shut me out of any tech-related job at all. I have friends with connections at Amazon, Microsoft etc. but it sounds like I wouldn't be able to work for any of those companies, even though they're not a direct competitor to my small tech company.

So am I doomed to try and find a job outside the entire tech industry for a year? Or is this a bunch of BS and nothing to worry about? Has anyone here dealt with a similar noncompete agreement and if so how did you handle it?

 

[latigo]

What is the name of your state (only U.S. law)? NJ

I work for a small tech company based in NJ with clients in both NJ/NYC. I signed a pretty ridiculous noncompete agreement two years ago and am shaking in my shoes trying to find a new job. It says I can't work for one year in any capacity in the following:
1) Own, manage, operate, control, be employed by, consult for, participate in, render services for, or be connected with any business in competition with [Company] on behalf of any entity or any division, segment, or subsidiary of such entity that has derived at least 5% of its income from the business of [Company]
2) No work with clients or prospective clients
3) No soliciting clients or soliciting current employees to leave the company

Here's the kicker though: they define "business" as "the provision of information technology-related products or services, including but not limited to, network support, network security, computer programming, website development or administration, cloud integration services and VoIP phone services."

This is a pretty all-encompassing definition that seems like it would shut me out of any tech-related job at all. I have friends with connections at Amazon, Microsoft etc. but it sounds like I wouldn't be able to work for any of those companies, even though they're not a direct competitor to my small tech company.

So am I doomed to try and find a job outside the entire tech industry for a year? Or is this a bunch of BS and nothing to worry about? Has anyone here dealt with a similar noncompete agreement and if so how did you handle it?

I would say that "all-encompassing" is an understatement and perhaps because of it the covenant is so overreaching as to be deemed unconscionable.

Although covenants not to compete are generally disfavored by the courts as inherently restrictive of trade and the individual's right to earning a living, neither do the courts disregard the legitimate interests of the employers sought to be protected.

You really need to have the entire employment agreement examined by an attorney experienced in this special area of contract law as it is applied in the states mentioned.

But just like there are more old drunks than old doctors about, there are more violations of these covenants than those that end up in the courts.

Employers often solely rely on the psychological deterrent. Like the one frustrating you.

See your attorney. You won't find the right answers anywhere else.