Legislators in New Jersey are likely to re-introduce legislation that would ban most noncompete agreements in the state, according to an article published Jan. 23 by JD Supra.
The legislation — Assembly Bill 5708 and Senate Bill 4385 — would ban noncompete agreements except for some cases of senior executives and would require employers to notify employees within 30 days of enactment that their noncompetes are no longer enforceable. According to the report, the bills are more likely to pass this year than in 2025 because Democrats, largely in favor of the ban, have gained control of both chambers of the legislature.
The proposed restrictions are similar to those in California and Massachusetts, according to JD Supra. It would also outlaw no-poach agreements and restrict exemptable noncompetes for senior executives to 12 months.
The laws would not apply to noncompetes entered into in the sale of a business or to causes or action that accrue prior to the enactment of the bill, leaving current noncompete litigations viable.
