Ensuring a fair and accurate employment contract is invaluable for an employee. The document you sign at the start of a job can control what happens at the end of it — whether you can work for a competitor, what you are paid if you are let go, whether a promised bonus or commission is actually owed, and how a dispute will be decided. At The Epstein Law Firm, we represent employees in all employment contract matters, working to see their interests are protected, as a Hackensack employment contracts lawyer serving employees across Bergen County and New Jersey.

Before signing your contract, speak to an attorney with years of experience with employment law matters. Call 201-231-7847 or contact our Bergen County law office online. A review is far less expensive, in money and in options, than a dispute over a clause nobody examined — and many contract problems can be fixed with a short negotiation before signature that would be nearly impossible to undo afterward.

This page explains the documents employees are most often asked to sign, how New Jersey courts approach non-compete and non-solicitation clauses, what a severance agreement really does, and what a careful review looks for. It is general information about common issues, not advice about your document; bring the actual agreement, because in contract matters the wording is the case.

Offer Letters, Handbooks, and Real Contracts: Know What You Are Signing

Not every document presented at hiring is a contract, and not every promise in a document is enforceable. An offer letter usually states the position, start date, and pay, and often says expressly that employment is at will and that the letter is not a contract. A signed employment agreement, by contrast, may set a term of employment, define the only reasons you can be fired, and guarantee particular compensation. Knowing which one you have determines what protection you actually hold.

Employee handbooks sit in between. New Jersey courts have, in some circumstances, treated clear handbook promises — for example, a specific progressive-discipline procedure — as enforceable, particularly where the handbook was widely distributed and contained no clear disclaimer. Employers responded by adding disclaimers, and their presence or absence is one of the first things a review examines. Commission plans, bonus plans, equity documents, and arbitration agreements each add their own terms, and they do not always agree with each other.

The practical rule is to read the set of documents as a whole and keep copies of everything you sign, including anything signed electronically. If a recruiter’s verbal promise about territory, commission rates, remote work, or a signing bonus matters to your decision, it should appear in the written documents, because a signed agreement commonly states that it supersedes prior oral promises. Our attorneys at The Epstein Law Firm compare the written contract against any verbal communication as a standard part of a review.

What a Well-Drafted Employment Contract Should Address

A well-drafted employment contract addresses all terms of employment and minimizes risk for employees. We know when an employment contract is effective, and when it exposes employees to unnecessary risk, and we work to ensure terms are well-defined and do not create ambiguity. The subjects a complete agreement should cover include:

  • Terms of employment, including any fixed term and renewal
  • Job duties, title, reporting line, and work location
  • Salary, and how and when it can be changed
  • Bonus, commission, and equity terms, including what happens to amounts earned but unpaid at departure
  • Employee handbook matters and which policies are incorporated
  • Non-compete agreements and non-solicitation and confidentiality clauses
  • Separation agreements and severance agreements, including any severance promised in advance
  • Termination provisions: notice, cause definitions, and cure opportunities
  • Dispute resolution: arbitration or court, and where a dispute would be heard

Ambiguity is rarely neutral. An undefined term such as ’cause,’ ‘commission earned,’ or ‘competitor’ will be interpreted later by the party with more leverage, usually in a dispute the employee did not anticipate. Defining those terms at signing — what counts as cause, when a commission is earned, which companies are competitors and where — is the single most valuable thing a review accomplishes.

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Non-Compete and Non-Solicitation Clauses in New Jersey

A non-compete clause restricts working for a competitor, or starting a competing business, for a period after employment ends, usually within a stated territory. A non-solicitation clause is narrower: it restricts recruiting the employer’s customers or employees rather than working in the industry at all. Confidentiality and trade-secret obligations are different again, and can apply even where a non-compete would not be enforced.

New Jersey courts do not enforce non-competes automatically, and they do not void them automatically either. Enforceability is generally assessed on reasonableness: whether the restriction protects a legitimate employer interest, whether its duration, geography, and scope of barred activity are no broader than reasonably needed, whether it imposes undue hardship on the employee, and whether it injures the public. Courts can, in appropriate cases, narrow an overbroad restriction rather than strike it entirely, which means signing a very broad clause in the hope that a court will fix it later is a genuine gamble.

When you received the agreement matters as well. A restriction presented at hiring is supported by the job itself as consideration; a restriction first presented mid-employment, after you have already started, can raise additional questions under New Jersey law about what you received in exchange. Whatever the timing, do not assume a clause is unenforceable because it seems unfair, and do not assume it is enforceable because it is written down — both questions turn on the specific wording and facts, and they should be answered before you resign or accept a competitor’s offer, not after a demand letter arrives.

Employment Contract Dispute Matters

Employment contract litigation can arise at any time, in a myriad of fact situations. We have years of experience litigating these cases, and whether your case involves enforcing a confidentiality agreement or a dispute over commissions, we provide knowledgeable counsel and litigation services. Common disputes include unpaid commissions or bonuses the employer says were never ‘earned,’ termination said to be for a cause the contract defines narrowly, severance promised in an agreement and then withheld, and restrictive covenants an employer tries to enforce beyond their reasonable scope.

Our experience with litigating employment cases permits us to also provide advice when reviewing contracts. After having litigated numerous cases involving the terms of employment contracts, we know what clauses are particularly susceptible to dispute. That litigation perspective shapes the advice: a reviewer who has argued over a commission plan’s forfeiture clause reads the next one differently, and flags the sentence that will matter in two years rather than only the salary figure that matters today. It also means we are realistic about leverage — which terms an employer of this type ordinarily moves on, which it treats as fixed policy, and where a side letter or an email confirmation can achieve the same protection as a redrafted clause.

Contract disputes also overlap with the rest of our employment litigation practice. A termination described as a contract matter may also involve discrimination, a hostile work environment, or retaliation protected by whistleblower law, and a severance release may quietly waive those claims. If you have been fired on a discriminatory basis, find out more about wrongful termination rather than treating the contract as the whole case.

Severance Agreements: The Release Is the Point

A severance agreement is a trade: money or benefits in exchange for a release of claims. Employers offer it to close the file; employees should read it to see what they are closing. The release is usually broad, covering known and unknown claims under discrimination, wage, and other employment statutes, and it commonly arrives with a short deadline that is the employer’s preference, not a legal requirement you must meet the same day.

Key terms to examine include the amount and payment schedule, whether commission or bonus amounts already earned are included, the treatment of accrued vacation where the agreement addresses it, benefits continuation and who pays for it, the reference the employer will give, non-disparagement and confidentiality and their exceptions, whether the agreement bars future employment or cooperation with agencies, and any obligation to repay if you breach. For employees who are 40 or older and asked to waive age discrimination claims, federal law provides specific consideration and revocation periods that the agreement must honor to be effective as to those claims.

Negotiation is normal and expected. Severance is one of the most commonly negotiated documents in employment law, and the items most often improved — amount, payment timing, reference language, and the scope of restrictions — are usually improved before signing. Once signed and any revocation period has passed, the release is generally final, which is why review comes first. Where a job loss also raises sexual harassment or whistleblower issues, the value of what is being released should be assessed before any price is agreed.

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Review Before Signing: How We Help

Our firm’s attorneys can help you before, during, and after your employment. We can advise you on litigation questions, review your contract provisions, determine if the written contract is consistent with any verbal communication, assist in contract negotiation, and protect your interests if you encounter a breach of contract issue. An effective employment contract can protect employees from avoidable disputes; although disagreements may inevitably occur between employees and employers, many could be avoided by addressing key points in the contract at the outset.

A review typically works like this: you send the full document set, we read it against New Jersey law and your actual goals — joining, staying, negotiating, or leaving — and we give you a plain-language summary of what each major clause does, which terms are standard, which are unusually one-sided, and which are worth raising. Where negotiation is appropriate, we can advise you on what to ask for or communicate with the employer directly, as the situation calls for.

Physicians, executives, financial professionals, and salespeople face versions of these issues with higher stakes and longer restriction periods, and academic and health-care employers often use standardized forms that nonetheless get negotiated regularly. The size of the employer is not a reliable guide to whether terms can move; the specificity and reasonableness of what you ask for usually matters more. A short, documented request — a narrower list of prohibited competitors, a defined commission-earning event, a mutual non-disparagement clause — signals professionalism rather than difficulty, and it creates a written record of what both sides understood the agreement to mean if a question ever arises later.

For more information about our employment law services, contact a lawyer online or call our Rochelle Park law office at 201-231-7847. If a signing deadline is close, say so when you call; short deadlines are common in these matters and can usually be accommodated or extended when they are identified early.

Arbitration Clauses, Governing Law, and Other ‘Boilerplate’ That Is Not Boilerplate

The final pages of an employment contract are often treated as boilerplate, but several of those clauses decide real disputes. A governing-law clause can subject a New Jersey employee to another state’s law on restrictive covenants, where the analysis may be less protective. A forum clause can require any dispute to be heard far from where you live and work. An attorneys’ fees clause can shift the cost of enforcing the agreement, and an entire-agreement clause can extinguish the oral promises that persuaded you to take the job.

Assignment and change-of-control language matters more than it once did. If your employer is sold, your agreement may pass to a buyer you never agreed to work for, while your non-compete may be argued to pass with it. Notice provisions control how and where formal notices — including a notice that you dispute a breach — must be sent, and missing the specified method can undermine an otherwise sound position. None of these clauses is a reason to refuse a good job; all of them are reasons to know what you signed.

The same is true of intellectual-property and outside-work clauses, which can claim ownership of projects you develop on your own time or bar freelance and board work you already do. Listing existing projects and outside commitments before signing, and having them expressly carved out where appropriate, is far simpler than arguing about ownership after something you built becomes valuable.

Notable Results

Our attorneys have recovered substantial verdicts and settlements for clients across New Jersey, including:

  • A $13,585,000 confidential settlement.
  • A $10,000,000 settlement in a New Jersey Transit bus accident case, where our firm served as local counsel alongside a Baltimore firm for a Maryland woman who lost both legs when a bus ran her over in Lakewood, New Jersey. The case was covered by the New Jersey Law Journal.
  • A $4,250,000 settlement in a wrongful death and survival action for a man killed by a defective tire.

Every case is different, and past results do not guarantee a similar outcome. What they do show is the level of preparation and persistence our firm brings to serious claims. Read more about our case results, or call (201) 231-7847 to talk about what your own claim may involve.

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Client reviews describe the responsiveness and care our team aims to deliver in every case:

“April was very professional and helped us tremendously. She explained everything thoroughly so that we understood the process from start to finish. We appreciate everything she did for us. We could not have had a better attorney.” — Agnes, Google review

“I not only recommend attorney Michael Epstein and his firm, but I guarantee once you have used his services you too will look no further. Michael responds in an extremely timely matter, he is a very knowledgeable and trustworthy person. There is no other attorney that will work as hard for you.” — Mike, Google review

Read more from our clients on our Google reviews for the Rochelle Park office.

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Hackensack Employment Contract FAQs: Non-Competes, Severance, and Review Before Signing

The answers below are general information about employment contracts under New Jersey law, not legal advice for a specific situation, because enforceability depends on the exact wording of the document, the job involved, and how the agreement came to be signed.

Is an offer letter the same as an employment contract in New Jersey?

Usually not. An offer letter typically confirms the position, start date, and pay, and often states that employment is at will and that the letter is not a contract. A signed employment agreement can go further, setting a term, guaranteed compensation, or limits on termination. Which document you have determines what you can enforce.

Read both for consistency, and keep everything you sign. If a verbal promise about commissions, territory, or remote work influenced your decision but does not appear in the written documents, raise it before signing, because agreements commonly state that they supersede earlier oral statements.

Sources: New Jersey Department of Labor and Workforce Development Worker Protections; New Jersey Courts Civil Division Information.

Are non-compete agreements enforceable in New Jersey?

They can be, but not automatically. New Jersey courts generally assess whether a non-compete protects a legitimate employer interest and is reasonable in duration, geographic reach, and the activities it bars, while also considering hardship to the employee and harm to the public. A restriction broader than reasonably needed may be narrowed by a court rather than enforced as written, or not enforced.

Because outcomes turn on exact wording and facts, never assume a clause is either fully enforceable or worthless. Have it assessed before you resign or accept a new position, when you still have options, rather than after your former employer seeks an injunction.

Sources: New Jersey Courts Civil Division Information; New Jersey Department of Labor and Workforce Development Worker Protections.

What is the difference between a non-compete and a non-solicitation clause?

A non-compete restricts where and for whom you can work, or whether you can start a competing business, for a period after leaving. A non-solicitation clause is narrower: it restricts soliciting the employer’s customers or recruiting its employees, while generally leaving you free to work in the industry. Confidentiality obligations are separate and protect information rather than mobility.

The distinction matters when you plan your next step, because conduct that breaches one clause may not breach another. A clause-by-clause review of what you signed — including any handbook acknowledgments — tells you which restrictions actually apply to the opportunity you are considering.

Sources: New Jersey Courts Civil Division Information; New Jersey Legislature: Statute Search Help.

Should I have a severance agreement reviewed before I sign it?

Yes. A severance agreement trades payment for a broad release of claims, often including claims you have not yet evaluated, and once signed and any revocation period has passed it is generally final. The amount offered first is frequently not the only amount the employer is authorized to pay, and non-monetary terms such as references are often negotiable.

Review the payment schedule, treatment of earned commissions and bonuses, benefits, non-disparagement, and any restrictions on future work. Employees aged 40 and over who are asked to waive age claims are entitled to specific consideration and revocation periods under federal law, and an agreement that ignores them has a defect worth raising.

Sources: U.S. Equal Employment Opportunity Commission on Age Discrimination; U.S. Equal Employment Opportunity Commission Employer Information.

My employer handed me a contract after I already started working. Is that different?

It can be. A restrictive covenant presented at hiring is supported by the employment itself, while one first presented mid-employment raises questions under New Jersey law about what additional consideration supported it and whether the circumstances of signing were fair. The timing, and any promotion, raise, or changed duties that accompanied it, are relevant facts.

Do not sign on the spot simply because you are already employed and feel you have no choice. Ask for time to review it, note exactly when and how it was presented, and get advice promptly, because the enforceability analysis and your negotiating position both depend on that history.

Sources: New Jersey Courts Civil Division Information; New Jersey Department of Labor and Workforce Development Worker Protections.

Can an employee handbook create enforceable rights in New Jersey?

In some circumstances, yes. New Jersey courts have treated clear, definite handbook promises — such as a specific disciplinary procedure an employer must follow before termination — as enforceable where the handbook was broadly distributed and lacked an effective disclaimer. Employers commonly include disclaimers stating the handbook is not a contract, and their wording matters.

Keep the version of the handbook you received when hired and any updates, because employers sometimes rely on a later version. If you were disciplined or fired without a promised procedure being followed, the handbook belongs in the documents a lawyer reviews alongside your agreement.

Sources: New Jersey Courts Civil Division Information; New Jersey Department of Labor and Workforce Development Worker Protections.

What happens to my commissions or bonus if I leave or am fired?

That depends on the plan’s wording, which usually defines when a commission or bonus is ‘earned’ — at booking, at delivery, at payment by the customer, or only if you are still employed on the payout date. Those definitions decide most disputes, and vague plans are a frequent source of litigation. Amounts that qualify as wages can also raise issues under New Jersey’s wage payment law.

Before leaving, gather the plan, your statements, and records of the sales involved, without taking materials you have no right to remove. An assessment can often be made from the documents alone, and it is far easier before a final paycheck issues than months later.

Sources: New Jersey Department of Labor Wage and Hour Information; U.S. Department of Labor on Overtime Pay.

Does my contract require arbitration instead of court?

Many employment agreements and separate arbitration agreements do require private arbitration of disputes, and such clauses are commonly enforced, though their scope and fairness can be challenged in particular circumstances. Arbitration changes the forum, the discovery available, the decision-maker, and usually the ability to appeal, so it is a substantive term, not boilerplate.

Check whether the clause covers statutory claims such as discrimination, who pays the arbitrator’s fees, and where the arbitration would be held. If you are asked to sign one at hiring, understand that you are usually giving up a jury trial in exchange, and weigh that before rather than after a dispute arises.

Sources: New Jersey Courts Civil Division Information; U.S. Equal Employment Opportunity Commission Employer Information.

Can I negotiate an employment contract, or is it take-it-or-leave-it?

Many terms are negotiable, especially for professional, executive, sales, and licensed roles: salary and signing bonus, commission definitions, the scope and duration of restrictive covenants, severance promised in advance, notice periods, and dispute-resolution terms. Employers expect negotiation at that level and a professional, specific request rarely harms an offer.

Prioritize the clauses with long tails over small signing-day gains. Narrowing a non-compete’s territory or adding a definition of ’cause’ that requires notice and a chance to cure can be worth far more over a career than a modest difference in starting salary, and both are commonly achieved.

Sources: U.S. Equal Employment Opportunity Commission Employer Information; New Jersey Department of Labor and Workforce Development Worker Protections.

What should I do if my employer has breached my employment contract?

Start by identifying the exact provision breached and the documents that prove it — the agreement, pay and commission records, and the employer’s stated reason. Then raise the issue in writing, calmly and specifically, so there is a record that you objected and gave an opportunity to cure where the contract requires one. Deadlines in the agreement, such as notice provisions, should be followed even while you dispute the underlying issue.

If the breach is not corrected, a lawyer can assess litigation, negotiation, and any related statutory claims, which may carry different remedies and deadlines than the contract claim itself. Preserve your copies of everything you signed from home if you lawfully have them, because access to work systems often ends quickly in a dispute.

Sources: New Jersey Courts Civil Division Information; New Jersey Department of Labor Wage and Hour Information.

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