New Jersey
New Jersey Legislature Continues Efforts to Significantly Limit Restrictive Covenants
On Might 2, 2022, the New Jersey State Meeting launched Meeting Invoice (AB) 3715 that, if enacted, would considerably restrict the use and enforceability of sure restrictive covenant provisions, whereas mandating further procedural necessities. AB 3715 is much like prior payments launched within the New Jersey legislature in recent times, and a part of the continued effort within the Backyard State to drastically alter the non-compete panorama. See New Jersey Normal Meeting to Vote on Renewed Invoice In search of to Curb Restrictive Covenants; New Jersey Restrictive Covenant Invoice Goals to Change the Panorama.
AB 3715 codifies the State’s common-law requirement {that a} restrictive covenant settlement should be no broader than obligatory to guard the employer’s authentic enterprise pursuits, should not be unduly burdensome on the worker, and can’t be injurious to the general public or inconsistent with public coverage.
Considerably, the invoice consists of a number of further obstacles to conventional restrictive covenants that in any other case could also be enforceable underneath present regulation. For instance, underneath the invoice, a restrictive covenant settlement:
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should be disclosed to the worker by the sooner of a proper supply of employment or 30 enterprise days earlier than the graduation of employment or, if the settlement is entered into after graduation of employment, should be offered to the worker not less than 30 enterprise days earlier than the settlement is to be efficient;
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should be restricted to a length of not more than 12 months following the worker’s termination;
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should be restricted to the geographic space(s) wherein the worker offered companies, or had a fabric presence, throughout the two years previous the worker’s termination, and can’t prohibit the worker from in search of employment in different states;
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should be restricted to solely the particular kinds of companies offered by the worker over the last two years of employment;
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can not penalize an worker for defending towards or difficult the enforceability of the restrictive covenant(s). The invoice is unclear as as to if a restrictive covenant might embrace a fee-shifting provision in favor of the employer or the prevailing get together, the place an employer efficiently enforces a covenant towards a breaching worker;
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can not include a alternative of regulation provision that may have the impact of circumventing the invoice’s proscriptions (with restricted exceptions); and
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can not stop an worker from offering a service to the employer’s buyer or consumer, if the worker doesn’t provoke or solicit the shopper or consumer. Whether or not the worker engaged in an “initiation” or “solicitation” – neither of which is outlined within the invoice – is a matter that probably will likely be litigated, particularly the place an worker engages in arguably refined or passive conduct.
Along with the above limitations, AB 3715 establishes a number of classes of staff towards whom a restrictive covenant settlement can’t be enforceable, together with:
Below the invoice, “misconduct” is outlined as “conduct which is improper [and] . . . not a superb religion error of judgment or discretion, and is both a deliberate refusal, with out good trigger, to adjust to the employer’s lawful and affordable guidelines made identified to the worker or a deliberate disregard of requirements of habits the employer has an inexpensive proper to count on.”
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non-exempt staff, as outlined underneath the Truthful Labor Requirements Act;
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staff underneath age 18;
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undergraduate or graduate pupil interns;
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seasonal staff, non permanent staff, or impartial contractors;
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low-wage staff, outlined as an worker whose common weekly earnings are lower than the statewide common; and
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staff employed lower than one 12 months.
Moreover, an employer should notify the worker in writing, inside 10 days of the worker’s termination, of its intent to implement a restrictive covenant settlement and should pay the worker 100% of the worker’s wages and fringe advantages throughout the interval of enforcement of a restrictive covenant. Whereas these necessities wouldn’t apply to terminations for misconduct, they’d apply to worker resignations, presumably creating the chance for an worker anticipating termination to preemptively resign and invoke utility of the notice-and-pay provisions.
Lastly, the invoice expressly permits an worker to convey a civil motion towards their employer for alleged violations of the invoice’s provisions, inside a two-year statute of limitations. The courtroom might then void the settlement and order “all applicable aid,” together with issuing of an injunction towards the settlement’s enforcement and awarding of damages and attorneys’ charges.
The Takeaway
As famous above, comparable payments have been launched in recent times, way back to 2017 and most lately in February 2022, when the New Jersey Senate launched SB 1410. That invoice has made no progress since its introduction and it stays to be seen whether or not AB 3715 will fare any higher. Nonetheless, employers needs to be conscious of this most up-to-date legislative effort, as in the end it might considerably change how they draft their future restrictive covenant agreements. Jackson Lewis will proceed to observe each AB 3715 and SB 1410 and can report on developments as warranted.
Jackson Lewis P.C. © 2022Nationwide Legislation Overview, Quantity XII, Quantity 140
New Jersey
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New Jersey
New Jersey weighs making underage gambling no longer a crime
TRENTON (AP) — Should underage gambling no longer be a crime?
New Jersey lawmakers are considering changing the law to make gambling by people under the age of 21 no longer punishable under criminal law, making it subject to a fine.
It also would impose fines on anyone helping an underage person gamble in New Jersey.
The bill changes the penalties for underage gambling from that of a disorderly persons offense to a civil offense. Fines would be $500 for a first offense, $1,000 for a second offense, and $2,000 for any subsequent offenses.
The money would be used for prevention, education, and treatment programs for compulsive gambling, such as those provided by the Council on Compulsive Gambling of New Jersey.
“The concern I had initially was about reducing the severity of the punishment,” said Assemblyman Don Guardian, a Republican former mayor of Atlantic City. “But the fact that all the money will go to problem gambling treatment programs changed my mind.”
Figures on underage gambling cases were not immediately available Thursday. But numerous people involved in gambling treatment and recovery say a growing number of young people are becoming involved in gambling, particularly sports betting as the activity spreads around the country.
The bill was approved by an Assembly committee and now goes to the full Assembly for a vote. It must pass both houses of the Legislature before going to the desk of the state’s Democratic governor, Phil Murphy.
The council said recently that it conditionally supports the bill but has concerns about it.
SEE ALSO: Hostile takeover of NJ police department is illegal, court rules
Luis Del Orbe, the council’s acting executive director, said he is glad it will provide funding for gambling treatment and education programs. But he said fines alone are not enough without mandating education about problem gambling. He asked that such a requirement be added to the bill.
“When a young person is ‘fined,’ who actually pays the fine?” he asked.
In a statement submitted to the Assembly panel, the council said, “More and more of New Jersey citizens need help due to the ongoing expansion of gambling opportunities, and it is anticipated that the demand will only continue to grow. There is also an urgent need for expanded education and awareness about the harms that can come of gambling, particularly with respect to youth.”
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Someone from out-of-state, or maybe even out of the country, is visiting New Jersey for the first time. Where do you take them? After grabbing a bagel and before chowing down on a slice of Jersey pizza, be sure to treat your out-of-town guest to a day in the Garden State with some of these places in mind.
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Celebrities who vowed to leave the United States after the election
Rumors are flying that Bruce Springsteen has vowed to leave the country if Donald Trump wins the 2024 election. He didn’t say it.
But false promises of leaving the country if a celebrity didn’t get their way has been a real thing and not always said in jest.
Here’s a list of famous people who promised to leave the country if Trump were elected. I hope you didn’t bet money on them leaving since none did.
Gallery Credit: Jeff Deminski
New Jersey
New Jersey State Police Gave a ‘Free Pass’ to Motorists with Courtesy Cards or Ties to Police, Investigation Finds – Insider NJ
The Office of the State Comptroller found even motorists suspected of dangerous driving offenses were let go by New Jersey State Police.
TRENTON—An investigation finds that New Jersey State Police troopers routinely gave preferential treatment to certain motorists who presented a courtesy card or asserted a personal connection to law enforcement—even when motorists were suspected of dangerous offenses, like drunk driving, according to a new report by the New Jersey Office of the State Comptroller.
OSC’s Police Accountability Project reviewed body worn camera footage of 501 no-enforcement stops by New Jersey State Police–meaning stops where New Jersey State troopers did not issue tickets or make arrests. In 139 or 27 percent of these no-enforcement stops, motorists presented a courtesy card, claimed to have a friend or relative in law enforcement, or flashed a law enforcement badge and then were let go, OSC’s report said. In some cases, the trooper released the motorist immediately, offering some version of “you’re good.” The report found that courtesy cards are in wide usage and function as “accepted currency” by state troopers. (In all but one case, the troopers gave the courtesy card back to the motorist, enabling the card to be used again.)
Reviewing more than 50 hours of body worn camera footage of the stops, which took place over ten days in December 2022, OSC found that troopers regularly decided not to enforce motor vehicle laws after receiving a courtesy card or being told the driver has ties to law enforcement. For instance, one motorist, who was stopped for driving over 90 miles per hour, admitted to drinking alcohol but was let go without a sobriety test after he presented two courtesy cards. Another motorist was stopped for driving over 103 miles per hour and was released after she volunteered that her father was a lieutenant in a local police department. The most significant consequence the troopers imposed in these stops was advising the motorists that they had left a voicemail message for the law enforcement officer named on the courtesy card or invoked as a friend or relative. OSC has released video excerpts of the footage.
“Our investigation shows that some people are being given a free pass to violate serious traffic safety laws,” said Acting State Comptroller Kevin Walsh. “Law enforcement decisions should never depend on who you know, your family connections, or donations to police unions. Nepotism and favoritism undermine our laws and make our roads more dangerous.”
Overall, close to half of the 501 non-enforcement stops reviewed by OSC involved speeding, many for more than 20 miles per hour over the speed limit. In three stops, drivers stopped for reckless driving, careless driving, and/or speeding, also admitted to drinking alcohol, yet were released without being asked to step out of the car for a field sobriety test. Both drunk driving and speeding are major causes of traffic fatalities. According to data compiled by the New Jersey State Police Fatal Accident Investigation Unit, in 2022, New Jersey recorded 646 fatal collisions that resulted in 689 deaths or 1.89 fatalities per day. This was among the highest number of traffic-related deaths in New Jersey in the past 15 years.
OSC initiated this investigation in response to reports that law enforcement officers’ decisions not to enforce motor vehicle violations were influenced by improper factors, including courtesy cards. Courtesy cards, often referred to as PBA cards, FOP cards, or gold cards, are given out by police labor associations to law enforcement officers. They also can be purchased through “associate memberships” with police associations and are sold by private companies.
OSC’s investigation found that courtesy cards are widely used. In 87, or 17 percent, of the no-enforcement stops OSC reviewed, motorists presented courtesy cards that came from municipal police departments, county and state agencies, as well as inter-state and out-of-state law enforcement agencies. They all appeared to be equally effective at getting motorists released without enforcement.
Asserting a relationship with law enforcement appeared to carry equal weight, OSC found. In 52 or 10 percent of the no-enforcement stops reviewed, the driver or passengers did not present a courtesy card but claimed a connection to law enforcement, and the trooper decided to let them go. In 29 of those stops, the motorist or passenger identified themselves as current, retired, or in-training law enforcement officers. Other stops resulted in no enforcement when the drivers or passengers claimed a relative, friend, or neighbor worked in a law enforcement agency.
In one stop, a trooper said he stopped a motorist for driving 97 miles per hour. After an extended conversation about the “friends” they had in common, the trooper told the driver to “stay safe” and let him go. In another stop, a trooper performed a computerized look-up of the driver’s credentials and discovered the driver had an active warrant for his arrest. But when the driver’s friend introduced himself, letting the trooper know that he was also an off-duty trooper, the stopping trooper walked back to the motorist, apologized for stopping him, and let him go without even mentioning the warrant. OSC was unable to determine from the footage what the warrant was for.
Other findings include:
- Providing preferential treatment to motorists who present courtesy cards or assert close personal relationships with law enforcement appears to have a discriminatory impact. Of the 87 courtesy cards observed in the sample, for instance, 69 were presented by White drivers.
- Even when courtesy cards were not present, racial disparities were observed in the sample. New Jersey State Police policy requires troopers to request all three driving credentials (license, registration, proof of insurance) when making motor vehicle stops, but OSC found overall, White and Asian drivers were less likely to have all three of their credentials requested and verified when compared to Black and Hispanic/LatinX drivers. Additionally, troopers conducted computerized lookups of Hispanic/LatinX drivers 65 percent of the time, while looking up White drivers only 34 percent of the time.
- In many stops, OSC was unable to ascertain why the troopers made the decision not to enforce motor vehicle violations because of the quality of the video footage or other factors. Still, OSC observed several of those stops involved dangerous offenses, underscoring the importance of reviewing no-enforcement motor vehicle stops, which are not routinely reviewed.
OSC made 11 recommendations, including that New Jersey State Police regularly review no-enforcement stops to better understand racial/ethnic trends in motor vehicle data and determine if additional training is needed. OSC also recommended that the Attorney General consider issuing a directive that would explicitly prohibit law enforcement officers from giving preferential treatment to motorists because of their ties to law enforcement or possession of courtesy cards.
Read the report.
Watch excerpts of the body camera footage.
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