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 violating a non-competition agreement, what is your legal exposure?  Money damages, an injunction to shut down your business or enterprise, punitive damages, jail?

Generally, the damages available for the breach of a restrictive covenant and/or non-competition agreement include(s) money damages (also known as “compensatory damages”), accounting for profits, and liquidated damages.  Punitive damages are not a realistic exposure in almost all but the most extreme cases, and jail time is out of the question.

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

Employees have been held liable for profits earned from the competition with a “soon-to-be former employer” if those damages were gained while still employed.

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 economic loss because of a violation of a 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