New Rule Will Ban Most Non-Compete Provisions

The Federal Trade Commission (“FTC”) has issued a new Rule that soon will ban virtually all non-compete agreements in the United States.

FTC Rule will Ban Non-Compete Provisions.Specifically, on April 23, 2024, the FTC issued a new Rule that deems it to be an unfair method of competition for anyone to (1) enter into or attempt to enter into a non-compete clause, (2) enforce or attempt to enforce a non-compete clause, or (3) tell someone else that a worker is subject to a non-compete clause. However, for “senior executives,” employers still can enforce non-compete agreements that were entered into before the Rule’s date effective date.

The United States Supreme Court recently ruled that an employee who brings a lawsuit alleging she was transferred to another position for a discriminatory reason does not have to prove the transfer caused her significant harm.

Jatonya Clayborn Muldrow is a police sergeant in the St. Louis Police Department.  She served as a plainclothes officer in the Department’s specialized Intelligence Division. In that position, she investigated public corruption and human trafficking cases, oversaw the Gang Unit, and was the head of the Gun Crimes Unit.  As part of her position, she also was a Task Force Officer with the FBI, which gave her FBI credentials, an unmarked vehicle that she took home, and the right to conduct investigations outside of St. Louis.

Female police officer can proceed with her claim that she was demoted due to her gender.After a new Intelligence Division commander took over the Division, he decided to transfer Sergeant Muldrow out of the unit so he could replace her with a male Sergeant who he considered a better fit for the unit’s “very dangerous” work. As a result, Sergeant Muldrow was reassigned to a uniformed position in its Fifth District.

The New Jersey Law Against Discrimination (“LAD”) can require a condominium association to allow a resident to keep an emotional support dog as an accommodation for a disability even if the dog exceeds the association’s weight limit for pets.

Housing residents may be entitled to emotional support dog as reasonable accommodation for disability.K.P. and B.F. live at Players Place II, a condominium complex in New Jersey. Players Place II’s rules and regulations allow only pets under 30 pounds to live in its apartments.

The Association filed a lawsuit against K.P., claiming he violated its rules and regulations.  K.P. and B.F. filed a counterclaim alleging the Association violated the LAD by denying B.F. a reasonable accommodation for her disabilities.

A recent decision by the United States District Court for the District of New Jersey recognizes that an employer filing a lawsuit against an employee because he asserted a discrimination claim against it can be an act of unlawful retaliation in violation of the New Jersey Law Against Discrimination (“LAD”) and Title VII of the Civil Rights Act of 1964 (“Title VII”).

Employer's lawsuit can be act of discrimination against employeeThe retaliation claim was asserted by Jean-Claude Franchitti and Vartan Piroumian, two former employees of Cognizant Technology Solutions Corporation and Cognizant Technology Solutions U.S. Corporation.  Mr. Franchitti was Cognizant’s Chief Architect and Assistant Vice President, and Mr. Piroumian was its Principal Architect and Enterprise Architect.

Mr. Franchitti and Mr. Piroumian each previously asserted discrimination and retaliation claims against Cognizant.  Mr. Franchitti filed a Charge of Discrimination with the United States Equal Opportunity Commission (“EEOC”) asserting age discrimination, national origin discrimination and retaliation, as well as a subsequent lawsuit in California asserting the same claims, a claim under the False Claims Act alleging the company was engaging in visa fraud, and a lawsuit in New York alleging retaliation.  Mr. Piroumian has filed two Charges of Discrimination against Cognizant with the EEOC alleging unlawful discrimination and retaliation.

Recently, the District of New Jersey dismissed an employee’s disability discrimination and failure to accommodate disability claims, but did not dismiss her related retaliation claim.

Female employee can proceed with retaliation claimAmber Ray worked as a Project Manager/Estimator for Elecnor Hawkeye, LLC.  Before she began working for Elecnor, Ms. Ray had been diagnosed with Lupus. However, sometime after Elecnor fired her, she learned she had been misdiagnosis and actually had Hypermobile Ehlers-Danlos syndrome, which is a complex musculoskeletal condition, and several other auto-immune conditions.

On Friday, July 30, 2021, Ms. Ray sent a text message to her supervisor, Hal Meeler, informing him that she would be working from home that day.  In response, Mr. Meeler told Ms. Ray she was required to work in the office, and he would discuss the issue with her on Monday.

A recent decision from the New Jersey Appellate Division affirms a trial court’s order requiring Gerber Products Company to bring a witness from Switzerland to New Jersey, at Gerber’s expense, to testify at a deposition in a discrimination lawsuit.  A deposition is a formal interview under oath used to obtain testimony from witnesses in lawsuits.

Bayer ordered to pay to bring witness from Switzerland to testify in discrimination lawsuit.Denise Willson is a former Vice President of Medical Sales North America for Nestlé Infant Nutrition.  Ms. Willson sued Gerber Products Company, Nestlé Healthcare Nutrition, Inc., Nestlé Holdings, Inc., and Gerber’s President and CEO, William Partyka, alleging they discriminated against her because of her age and gender.  More specifically, she claims they fostered a “boys club” culture, paid her less than her younger male peers, denied her a promotion to the position of general manager, and ultimately fired her in retaliation for her complaints about the discrimination in violation of the New Jersey Law Against Discrimination (“LAD”).

As part of her lawsuit, Ms. Willson alleges she spoke to Mr. Partyka’s supervisor, Alexandre Costa, about the retaliatory termination, gender discrimination and Gerber’s failure to promote her.  When Ms. Willson’s lawyers sought to take Mr. Costa’s deposition, the defendants objected. They argued that Mr. Costa lives in Switzerland, claims his meeting with Ms. Wilsson was about sales rather than her allegations of discrimination and retaliation, denies he was involved in the decision to terminate her employment or has any other information pertinent to her case, and that requiring him to come to New Jersey for his deposition supposedly would “create a tremendous burden on [his] business.”  The defendants also argued that neither Mr. Costa nor his employer, Nestlé Enterprises S.A., is a party to the lawsuit.

In a recent ruling, New Jersey’s Appellate Division recognized that the same basic legal principles that apply to sexual harassment claims in employment under the New Jersey Law Against Discrimination (“LAD”) also apply to sexual harassment claims involving housing discrimination under the LAD.  The LAD is a law that prohibits discrimination in the context of both employment and housing.

Leasing company can be liable for sexual harassment against prospective tenant.In November 2019, Sira Traore attempted to lease an apartment for her family and financial assistance from Fairview Homes Preservation, L.P. (“Fairview).  She met with Ricardo Mendoza, who was an employee of Related Management Company, L.P. (“Related”), a company that manages and leases apartments on behalf of Fairview.

Ms. Traore claims that when she met with Mr. Mendoza he touched her and pressured her to go to his hotel room to have sex with him in exchange for him providing her a lease for an apartment lease and the housing assistance she was seeking.  Ms. Traore did not agree to have sex with Mr. Mendoza, and claims that as a result she did not receive a lease or housing assistance.  Ms. Traore recorded her conversation with Mr. Mendoza using her cell phone.

A non-compete agreement is a contract that prevents an employee for working for a competitor for a period of time after his or her employment relationship ends.

As a general rule, New Jersey Courts enforce non-compete agreements if the employer has a legitimate interest to protect such as confidential information or client relationships, but only to the extent the restrictions are reasonable under the circumstances, including in terms of their duration and geographic scope.

Are non-compete agreements enforceable against New Jersey psychotherapists?New Jersey Courts have recognized that there are two categories of employees for whom non-compete agreement cannot be enforced: Lawyers and psychologists.  But there also is some support in the law that non-compete agreements may not be enforceable against other types of psychotherapists, such as Licensed Social Workers (“LSWs”) and Licensed Clinical Social Workers (“LSCWs”).

Included on BERGEN Magazine’s 2023 Top Lawyers List

Jonathan Nirenberg selected as one of Bergen County's Top Lawyers in 2023Jonathan I. Nirenberg is honored to have been selected by BERGEN magazine to be included on its 2023 list of Bergen County’s Top Lawyers, in the category Labor & Employment law.  The entire list is included in the November 2023 edition of BERGEN magazine.  You can view the list of Bergen County’s Top Lawyers in Labor & Employment lawyers here.

Jonathan, a graduate of Cornell Law School, has been representing employees in employment law cases for 25 years.  To read more about him, please see his biography on our website.

A new decision from New Jersey’s Appellate Division recognizes that an employer can be liable for retaliating against an employee who filed an anonymous whistleblower complaint if the evidence supports the inference that it could have realized she was the one who filed the complaint.

Court finds whistlblower protected from retaliation after making anonymous call.For 14 years, Carol Smith worked for Konica Minolta Business Solutions (“KMBS”), primarily as a sales representative.  In 2018, Ms. Smith reported to her supervisors that over a million dollars of equipment had been shipped to a warehouse, and KMBS had recorded it as installed and paid employees a commission for selling that equipment, but the equipment actually remained in the warehouse and KMBS was improperly using it as collateral for bank loans.

Ms. Smith’s supervisors failed to address her complaint, and instead began harassing her.  Accordingly, she eventually reported the fraudulent activity anonymously, through KMBS’ employee whistleblower hotline.

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