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NJ A5708

Bill

Status

Introduced

5/22/2025

Primary Sponsor

Anthony Verrelli

Click for details

Origin

General Assembly

2024-2025 Regular Session

AI Summary

  • 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

  • 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

  • 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

  • Declares all "no-poach" agreements between employers that restrict hiring of each other's workers to be void and against public policy

  • 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

Committee Referrals

Regulated Professions12/4/2025
Labor5/22/2025

Full Bill Text

No bill text available