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NJ S4385

Bill

Status

Introduced

5/19/2025

Primary Sponsor

Joseph Lagana

Click for details

Origin

Senate

2024-2025 Regular Session

AI Summary

  • Prohibits employers from requiring, enforcing, or representing that workers are subject to non-compete clauses, with immediate effect for most workers and prospective effect for senior executives (those in policy-making positions earning at least $151,164 annually)

  • Requires employers to notify workers within 30 business days of the law's effective date that existing non-compete clauses are void and unenforceable

  • Allows existing non-compete clauses for senior executives to remain valid only if they meet specific requirements: limited to 12 months duration, geographically reasonable, necessary to protect trade secrets, and require the employer to pay 100% of the worker's salary during the restricted period

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

  • Creates a private right of action allowing affected workers to sue within two years, with remedies including voiding agreements, lost compensation, attorneys' fees, and liquidated damages up to $10,000

Legislative Description

Prohibits non-compete clauses.

Labor

Last Action

Introduced in the Senate, Referred to Senate Labor Committee

5/19/2025

Committee Referrals

Labor5/19/2025

Full Bill Text

No bill text available