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Non-Competition Agreement Triggered Upon Break in Service, New Jersey Appellate Division Holds

Authors: Mark Diana (Morristown), Evan J. Shenkman (Morristown)

Published Date: February 1, 2013

In Truong, LLC d/b/a V.I.P. Nails v. Tran, Le et al., 2013 N.J. Super. Unpub. LEXIS 64 (N.J. App. Div., Jan. 9, 2013), the New Jersey Appellate Division held that a two-year non-competition agreement was triggered upon an employee’s four-month break in service, after which the employee was rehired and worked for two more years before leaving to open a competing nail salon. As a result, the non-compete had expired by the time the employee left to start a competing business. This opinion provides an important reminder for employers to reissue non-competes to their employees upon any breaks in service. 

Note: This article was published in the February 2013 issue of the New Jersey eAuthority.

Mark Diana  (Morristown)

Mark Diana
Mark has a diverse litigation and counseling practice representing both private and public sector employers. For more than 25 years he has been defending employers in discrimination, harassment, wrongful termination, retaliation, breach of contract, wage and hour, and other employment-related cases before state and federal courts, administrative agencies and arbitration tribunals. Mark also provides counseling and compliance advice to employers with respect to the full spectrum of employment...

Evan J. Shenkman  (Morristown)

Evan J. Shenkman
Evan J. Shenkman is a member of Ogletree Deakins’ Knowledge Management Department, serving as the firm’s Senior Manager of Knowledge Management Counsel and Research. In his role, Mr. Shenkman is responsible creating processes, practices, and software to allow firm attorneys to work smarter, faster, and more in sync; creating internal and client-facing collaborative tools; and managing the firm's team of Knowledge Management Counsel and the firm's Legal Researchers. He also manages...