Noncompete News: New Jersey Introduces New Bill to Kill Noncompete Agreements
Executive Summary: Following last year’s unsuccessful attempt to ban noncompete agreements, New Jersey’s legislature introduced a new bill on May 19, 2025, to prohibit the use of noncompete clauses. The Proposed Act’s Impact on New Jersey Businesses This bill, known as “S 4385,” provides that no employer may require a noncompete agreement from any employee or other individual . Under the bill, every clause to restrain anyone from engaging in a lawful profession, trade, or business of any kind is void. If enacted, the bill will require every covered employee with a noncompete to be advised in writing by the employer that those noncompete clauses are no longer valid and not enforceable. The Proposed Act’s (Limited) Exceptions The bill provides narrow exceptions to the ban on noncompete clauses: If a cause of action related to a noncompete clause accrued before the bill’s effective date; Noncompete clauses entered into by an employer under a sale of a business; or Noncompete clau...