What Happens if You Breach a Covenant Not to Compete?

Breaching a Covenant Not to Compete in New Jersey

If you sue or you’re being sued for violating a covenant not to compete or non-competition agreement, what is your exposure?  Money damages, injunctive relief, punitive damages, jail?

Damages available for the breach of a restrictive covenant and/or non-competition agreement include money damages (also known as “compensatory damages”), accounting for profits, and liquidated damages.  Generally, punitive damages are not a realistic exposure and jail time is out of the question.

New Jersey courts may take into consideration the employee’s gain from the breach when calculating a successful damage claim.

Employees have been held liable for profits earned from competition with a “soon-to-be former employer” if those damages were gained while still employed. To learn more about monetary damages and other relief available to you when a covenant not to compete or non-competition agreement is threatened or has been breached.

Fredrick P. Niemann Esq.

Are you an employee, business owner or employer with a business law question(s) about covenants not to compete in NJ who believes he or she has suffered an enormous loss because of a breached covenant not to compete in NJ or illegal covenant not to compete restriction?

If so, contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or fniemann@hnlawfirm.com to schedule a consultation about your particular matter.

Our attorneys welcome your calls and inquiries and you’ll find us easy to talk to and very approachable.  Hanlon Niemann & Wright appears statewide in all 21 counties in New Jersey each week.


Written by Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a New Jersey Covenant Not to Compete Attorney

Fredrick P. Niemann, Esq. is a NJ Covenant Not to Compete Law Attorney serving these New Jersey Counties:

Monmouth County, Ocean County, Essex County, Cape May County, Mercer County, Middlesex County, Bergen County, Morris County, Burlington County, Union County, Somerset County, Hudson County, Passaic County