Articles Tagged with Non-solicitation

On July 26, 2019, New Jersey’s Appellate Division issued a detailed ruling regarding the non-compete and non-solicitation provisions in ADP, LLC’s stock option plan.  In the process, the court provided a detailed explanation of how New Jersey courts should analyze restrictive covenants.

The appeal stems from separate cases ADP filed against six of its former sales representatives, Erik Kusins, Ryan Hopper, Anthony M. Karamitas, Nick LeNoble, Michael DeMarco and Daniel Hobaica.  They had mixed results at the trial court level.  Those cases were consolidated in a single appeal.

ADP has restrictive covenants with most of its sales force.  Specifically, most of its sales employees are required to sign agreements that include non-compete and non-solicitation provisions that prohibit them from soliciting any ADP clients who they had contact with at ADP, for 12 months after they stop working for ADP, in the geographical territory in which they worked for ADP.