Legal Question in Business Law in New Jersey

Non-Compete / Non-Solicitation

I own a small daycare center in NJ (Approx. 30 kids) I have my employees initial a non-compete clause in there contract. In summary it states that they can't open a childcare facility within 25 miles of mine for 1 year after termination. Compete is defined as employing one of my employees or solicitating my clients that were present during their employment. One of my employees resigned and is starting a home daycare at half my cost. Three children have already given me two weeks notice and three more could come very shortly. For me being a small business owner this is a major hit. Please advise me what my rights are and what I can do.


Asked on 9/17/04, 10:27 am

2 Answers from Attorneys

Alan Albin Alan S. Albin, Attorney at Law

Re: Non-Compete / Non-Solicitation

You need to retain an attorney to assist you.

Your attorney can review the actual contract language and all pertinent facts and circumstances. A clause such as you describe may or may not be legally enforceable depending upon the circumstances.

If the non-compete clause is enforceable, your attorney could file a lawsuit against the ex-employee(s) to obtain an injunction to prevent further operation of the competing day-care center. The lawsuit could also include a claim for any damages you may have suffered due to the breach of contract.

I strongly recommend that you consult with an attorney immediately so that you can explore your legal rights, obligations, and options. If you wish to discuss retaining my services, contact me at:

[email protected]

(973)-605-8995

[Disclaimer: The above comments are not intended as nor should they be relied upon as "legal advice", which can only be obtained by personal consultation with a retained attorney; at which time the specific facts and circumstances of your case can be thoroughly evaluated. This reply is provided for general informational and educational purposes only, and does not create an attorney-client relationship with the responding attorney.]

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Answered on 9/17/04, 11:16 am
Walter LeVine Walter D. LeVine, Esq.

Re: Non-Compete / Non-Solicitation

I concur with Alan. If you have a valid non-compete agreement, you must quickly sue to enjoin the former employee from acting further, plus ask for damages for several torts: intentional intereference with business relationships, violation of the agreement, lost business, etc. You should get an attorney familair with these types of proceedings. I know several, if you need a recommendation. I must caution you that this type of litigation can be costly, but if you are successful, the costs will be paid by the former employee.

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Answered on 9/17/04, 1:41 pm


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