This bill prohibits non-compete clauses and no-poach agreements for all workers, including employees, independent contractors, and volunteers, effectively making any agreement that restricts an individual's ability to seek employment after leaving a job void. Employers are not allowed to seek, require, or enforce non-compete clauses from any worker after the bill's effective date. For existing non-compete clauses, employers must notify affected workers that these clauses are no longer valid and enforceable. The bill includes specific exceptions for non-compete clauses related to the bona fide sale of a business and those involving senior executives, provided they meet certain criteria, such as being reasonable in scope and duration.
Additionally, the bill establishes that no-poach agreements are contrary to public policy and thus void. Workers affected by prohibited non-compete clauses or no-poach agreements can bring civil actions against employers, with courts having the authority to void such agreements and award damages. Employers who fail to comply with the notification requirements outlined in the bill may face penalties imposed by the Department of Labor and Workforce Development. Overall, the legislation aims to enhance worker mobility and protect their rights in the job market.