Consider "Consideration" in Post Employment Restrictive Covenants
By David J. Sprong, Esq. and Anthony J. Vizzoni, Esq.
It is a best practice for any direct-hire organization to ensure that its recruiters and sales staff have adequate restrictive covenants. Such restrictive covenants should take the form of non-compete covenants designed to protect the employer from a recruiter or salesperson leaving to work for a competitor, non-solicitation agreements designed to ensure that recruiters and salespeople, if they do leave, do not take clients or candidates to a new employer, and covenants designed to prohibit the use and disclosure outside the firm of a direct-hire company’s confidential and proprietary business information.
Generally, such restrictive covenants will be enforced against employees provided they are reasonable, do not violate public policy, are part of a written employment agreement, and are supported by adequate consideration. In assessing the reasonableness standards, courts will typically consider the restrictive covenant’s duration, geographical limits, scope of activities prohibited and the necessity of protecting the employer’s legitimate business interests balanced against any undue hardships caused to the employee.
Under basic principles of contract law, “consideration” is a critical element of the enforceability of a restrictive covenant. In other words, because the employer is restricting the employee’s ability to work in a limited way, the employer must provide the employee with something valuable for the employee giving up such rights. At the time of hire, the promise and terms of employment typically serve as adequate consideration for restrictive covenants, as well as other terms in an employment agreement.
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Partner Timothy Szuhaj Elected to Mid-Atlantic Staffing Association Board of Directors
Cherry Hill, N.J., May 16, 2013 – Becker Meisel Partner Timothy J. Szuhaj has recently been elected to the Mid-Atlantic Staffing Association Board of Directors. Serving the Mid-Atlantic region, MASA aims to foster the highest level of competence and business practices among its members. MASA is dedicated to educating its members, clients and the general public about the recruiting industry and its benefits. Promoting the growth and welfare of the recruiting profession in the region and developing a common set of ethical standards and practices is MASA’s primary goal.
“MASA is pleased to welcome Tim to our board,” says Dorian Carleton, Executive Director of MASA. “Tim and his firm are leaders in the Staffing Industry and bring a depth of insight and energy to our team.”
Mr. Szuhaj has a wealth experience related to the Staffing Industry, having served as counsel in a number of staffing industry matters. He counsels staffing clientele in a variety of business and operational issues, including Master Service Agreements, Vendor Management Agreements, Corporate Structure and Risk Management issues, Intellectual Property matters, Finance and Mergers and Acquisitions.
Mr. Szuhaj says, “Businesses are relying on the Staffing Industry more than ever. On a regional basis, MASA plays an important role in promoting the growth and vitality of the recruiting profession. I am delighted to contribute my experience in legal matters related to the Staffing Industry to support MASA's important and timely mission.”
Steven Weinstein to Moderate "Prevailing Wage Law in New Jersey" Seminar
Livingston, N.J., April 29, 2013 - Becker Meisel Attorney Steven R. Weinstein will moderate the “Prevailing Wage Law in New Jersey” seminar, hosted by Lorman Education Services, on June 21, 2013, in Parsippany, New Jersey.
The seminar is designed for attorneys, construction and project managers, owners, presidents, vice presidents, compliance officers, accountants, controllers, contractors, subcontractors, engineers and payroll professionals. Topics will include:
• Prevailing Wage Act
• Contractor Registration Act
• Audit Process
• Wage and Hour Laws
• Wage Collection
• Construction Industry Independent Contractor Act
• Liability for Failure to Comply
• Defending Prevailing Wage Claims
To register, e-mail email@example.com, visit www.lorman.com/ID391369, or call 866.352.9539. Click here for the full release.
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