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NJ S4385
Bill
Status
5/19/2025
Primary Sponsor
Joseph Lagana
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AI Summary
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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)
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Requires employers to notify 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 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
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Declares no-poach agreements between employers that restrict hiring each other's workers to be void and contrary to public policy
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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