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 volunteers. The definition of a non-compete clause encompasses any agreement that restricts a worker from seeking employment after their relationship with the employer ends. Existing non-compete clauses must be rendered void unless they meet specific criteria, particularly for senior executives, which include limitations on duration, geographic scope, and the necessity to protect legitimate business interests. Employers are required to notify affected workers that their non-compete clauses are no longer valid within 30 business days of the bill's enactment.

The bill also 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 empowered to void such agreements and award damages. Additionally, the Department of Labor and Workforce Development is authorized to impose penalties on employers who fail to comply with notification requirements. Exceptions to the prohibition on non-compete clauses include those related to the bona fide sale of a business and certain agreements with senior executives, provided they adhere to the outlined conditions.