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 any worker, 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 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 Employers are required to notify affected workers that their non-compete clauses are no longer valid and enforceable.

Additionally, the bill allows workers affected by prohibited non-compete clauses or no-poach agreements to bring civil actions against employers, with courts empowered to void such agreements and award damages. Employers who fail to comply with notification requirements may face penalties from the Department of Labor and Workforce Development. 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 requirements. Overall, the legislation aims to enhance worker mobility and protect their rights in the job market.