Legislature Passes on Bill To Change Employment Laws

January 20, 2014 – In The News

Stephanie Resnick was quoted in the NJBIZ article "Legislature Passes on Bill To Change Employment Laws." While the full text can be found in the January 20, 2014, issue of NJBIZ, a synopsis is noted below.

Three New Jersey Democratic assembly members introduced legislation last year that would have nullified noncompete agreements for all those employees qualifying for unemployment benefits in the state.

According to Stephanie Resnick, one probable motivator for the bill is the 60 percent increase in the number of departing employees being sued by former employers for allegedly breaching noncompete agreements.

The other, she added, was most likely the unemployment rate in New Jersey, which at last count was approximately 7.8 percent.

“When you are restricting the post-employment activities of employees who were terminated, my sense is that the New Jersey legislature believes that you’re essentially prohibiting or significantly limiting that person’s ability to find a new job,” she said.

Limiting a company’s ability to protect its interests in a competitive work environment isn’t a good thing either, Resnick added.

“It definitely would impact and hurt businesses,” she said.