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 bill defines a non-compete clause as any agreement that restricts a worker from seeking employment after their relationship with the employer ends. Existing non-compete clauses must be rendered unenforceable, and employers are required to notify affected workers that these clauses are no longer valid. Exceptions to this prohibition include non-compete clauses related to the bona fide sale of a business and those involving senior executives, provided they meet specific criteria outlined in the bill.

For senior executives, non-compete clauses that were in effect prior to the bill's enactment can remain valid if they comply with certain requirements, 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 impose penalties. Additionally, the Department of Labor and Workforce Development is tasked with enforcing compliance, including issuing fines for failure to provide required notifications to workers.