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NJ A5708
Bill
Status
5/22/2025
Primary Sponsor
Anthony Verrelli
Click for details
AI Summary
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Prohibits employers from entering into, enforcing, or threatening to enforce non-compete clauses against workers, with limited exceptions for senior executives earning over $151,164 annually in policy-making positions
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Requires employers to notify current workers within 30 business days of the law's effective date that existing non-compete clauses are void and unenforceable
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Allows pre-existing non-compete clauses for senior executives to remain valid only if they meet strict requirements: duration limited to 12 months, geographically restricted to areas where work was performed, and employer must pay 100% of compensation during any restricted period
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Declares all "no-poach" agreements between employers that restrict hiring of each other's workers to be void and against public policy
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Authorizes workers to bring civil lawsuits within two years of violations, with remedies including voiding agreements, liquidated damages up to $10,000, lost compensation, and attorneys' fees
Legislative Description
Prohibits non-compete clauses.
Regulated Professions
Last Action
Reported and Referred to Assembly Regulated Professions Committee
12/4/2025