This bill prohibits non-compete clauses and no-poach agreements in New Jersey, making it unlawful for any employer—private, public, or nonprofit—to seek, require, or enforce such agreements from workers, including independent contractors and unpaid individuals. The bill defines a non-compete clause as any agreement that restricts a worker from seeking employment after their relationship with the employer ends. Employers must notify affected workers that existing non-compete clauses are no longer valid and enforceable within 30 business days of the bill's effective date. Exceptions to this prohibition include non-compete clauses related to bona fide sales of business entities and those involving senior executives, provided they meet specific requirements outlined in the bill.

For non-compete clauses involving senior executives that were in effect prior to the bill's enactment, the bill stipulates that they will remain valid only if they are revised to comply with certain conditions, such as being limited in duration to 12 months and not being overly broad in scope. The bill also allows workers to bring civil actions against employers for violations, with courts having the authority to void non-compete clauses and no-poach agreements, as well as to award damages and attorney fees. Additionally, the Department of Labor and Workforce Development is empowered to impose penalties on employers for failing to comply with notification requirements.