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. Existing non-compete clauses must be rendered void unless they meet specific criteria, particularly for senior executives, which include limitations on duration (not exceeding 12 months), geographical 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 Employers are required to notify affected workers that their non-compete clauses are no longer valid and enforceable.

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 having the authority to void such agreements and award damages. Additionally, the Department of Labor and Workforce Development is empowered to impose penalties on employers for non-compliance with notification requirements. Exceptions to the prohibition include non-compete clauses related to the bona fide sale of a business and those that were in effect prior to the bill's enactment, provided they meet the outlined conditions.