{"id":116,"date":"2019-05-13T11:48:16","date_gmt":"2019-05-13T15:48:16","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/tradesecretslaw\/?p=116"},"modified":"2019-05-13T11:48:16","modified_gmt":"2019-05-13T15:48:16","slug":"third-circuit-reverses-n-j-court-decisions-on-restrictive-covenant-agreements-enforceability","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/2019\/05\/13\/third-circuit-reverses-n-j-court-decisions-on-restrictive-covenant-agreements-enforceability\/","title":{"rendered":"Third Circuit Reverses N.J. Court Decisions on Restrictive Covenant Agreement&#8217;s Enforceability"},"content":{"rendered":"<p>On April 26, 2019, the Third Circuit Court of Appeals vacated and remanded two district court decisions in which the courts had held that a restrictive covenant agreement\u2014offered only to the company\u2019s highest-performing sales employees in exchange for eligibility to participate in a stock-option award program\u2014was unenforceable\u00a0<i>per se<\/i>\u00a0under New Jersey law.\u00a0<i>ADP, LLC v. Rafferty<\/i>, 18-1796, 2019 WL 1868701 (3d Cir. Apr. 26, 2019).<\/p>\n<p>ADP utilized two separate layers of agreements containing postemployment restrictive covenants: (1) sales representation agreements (SRAs) and nondisclosure agreements (NDAs) signed by all employees at the time of hire and as a condition of employment; and (2) restrictive covenant agreements (RCAs) with certain high-performing employees as a condition of those employees\u2019 eligibility to participate in the company\u2019s stock-option award program. The RCAs contained more restrictive provisions than the SRAs and NDAs.<\/p>\n<p><a href=\"https:\/\/www.duanemorris.com\/alerts\/third_circuit_reverses_restrictive_covenant_agreement_enforceability_new_jersey_0519.html\">View the full <em>Alert<\/em> on the Duane Morris LLP website<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 26, 2019, the Third Circuit Court of Appeals vacated and remanded two district court decisions in which the courts had held that a restrictive covenant agreement\u2014offered only to the company\u2019s highest-performing sales employees in exchange for eligibility to participate in a stock-option award program\u2014was unenforceable\u00a0per se\u00a0under New Jersey law.\u00a0ADP, LLC v. Rafferty, 18-1796, &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/2019\/05\/13\/third-circuit-reverses-n-j-court-decisions-on-restrictive-covenant-agreements-enforceability\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Third Circuit Reverses N.J. Court Decisions on Restrictive Covenant Agreement&#8217;s Enforceability&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[145,6,64,146,44,148,83,149,147],"ppma_author":[155],"class_list":["post-116","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-breeana-somers","tag-lawrence-h-pockers","tag-nda","tag-new-jersey","tag-noncompete","tag-rca","tag-restrictive-covenants","tag-sra","tag-third-circuit"],"authors":[{"term_id":155,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/posts\/116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/comments?post=116"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/posts\/116\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/media?parent=116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/categories?post=116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/tags?post=116"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/tradesecretslaw\/wp-json\/wp\/v2\/ppma_author?post=116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}