Pierson v. Medical Health Centers, 183 N.J. 65 (2005)

Agreements restricting the ability of a physician to compete with a former employer are not inherently invalid. In Pierson, the Supreme Court of New Jersey affirmed that restrictive covenants between physicians and hospitals are unenforceable only if the covenants are deemed unreasonable. The Court in Pierson maintained that the test established in Karlin v. Weinberg, a previous New Jersey Supreme Court case, should be used to evaluate such restrictive covenants in the overall interests of the employer, the employee, and the public.

Pierson v. Medical Health Centers, 183 N.J. 65 (2005)

Agreements restricting the ability of a physician to compete with a former employer are not inherently invalid. In Pierson, the Supreme Court of New Jersey affirmed that restrictive covenants between physicians and hospitals are unenforceable only if the covenants are deemed unreasonable. The Court in Pierson maintained that the test established in Karlin v. Weinberg, a previous New Jersey Supreme Court case, should be used to evaluate such restrictive covenants in the overall interests of the employer, the employee, and the public.