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 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clauses must be rendered unenforceable, and employers are required to notify affected workers that these clauses are no longer valid.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 bona fide sales of business entities and those involving senior executives, provided they meet specific criteria 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 can remain valid if they are revised to 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 affected by prohibited non-compete clauses or no-poach agreements to 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 failing to comply with notification requirements.