Allowed if reasonable

Non-compete law in New Jersey

New Jersey has no general noncompete statute that we could find, so enforceability of employee covenants is decided by courts under a reasonableness standard. One narrow statute applies: since July 1, 2024 the written contract required for a domestic worker may not contain a non-competition agreement limiting the worker's ability to seek pay for domestic services after the engagement ends (P.L.2023, c.262, section 13; C.34:11-71). Bills to ban or sharply limit noncompetes have been introduced in recent sessions without becoming law; S 1407 (2026-27 session; official text read) would ban noncompete clauses for workers other than 'senior executives' (policy-making employees paid at least $151,164). The Legislature's bill histories, read on 2026-10-14, show S 1407 and its reported Assembly companion A 1829 only introduced and referred to the Senate and Assembly Labor Committees on January 13, 2026, with no later action.

Last verified · confidence medium. Clauseworthy is not a law firm and does not give legal advice.

Employee non-competes
Not banned; conditions apply
Pay floor
None in the statute
Duration
No statutory cap.

Exceptions and special rules

  • Domestic workers (as defined in P.L.2023, c.262, s. 2). A hiring entity may not employ or engage a domestic worker (except casual work or under five hours a month) without a signed written contract, and that contract may not contain a mandatory pre-dispute arbitration agreement or a 'non-disclosure agreement, or non-competition or non-disparagement agreement, limiting the ability of the covered domestic worker to seek compensation for performing domestic services after the worker ceases to receive compensation from the domestic work hiring entity'. Act approved January 12, 2024; effective on the first day of the sixth month next following enactment (July 1, 2024, derived). (P.L.2023, c.262, s. 13(b) (C.34:11-71))

Non-solicitation clauses

No statute; common law.

Contracts naming another state's law

None found.

Remedies

No statutory remedies; common-law injunction and damages.

Recent changes

  • 2026-01-13. S 1407 (Sens. Lagana and Cryan), 'Prohibits non-compete clauses', pre-filed for introduction in the 2026 session (official text read): employers could not seek, accept or enforce a non-compete clause with a worker who is not a 'senior executive' (policy-making position, total compensation of at least $151,164), including clauses signed before the effective date, and would have to notify such workers within 30 business days that existing clauses will not be enforced; existing senior-executive clauses would be void unless they meet conditions including a 12-month limit and geographic limits. The Legislature's bill histories (read 2026-10-14) show S 1407 introduced and referred to the Senate Labor Committee, and A 1829 (named as the Assembly companion by a secondary summary, UB Greensfelder via JD Supra) introduced and referred to the Assembly Labor Committee, both on 2026-01-13, with no later action. Not law. Source
  • 2025-12-04. Prior-session bill A 5708 (companion S 4385) cleared the Assembly Labor Committee 8-2; later reported dead at the end of the 2024-25 session. Secondary sources only (law-firm and LegiScan summaries); not law. Source
  • 2024-07-01. P.L.2023, c.262 (S 723, domestic workers bill of rights; approved January 12, 2024) took effect on the first day of the sixth month after enactment: domestic-worker contracts may not contain non-competition agreements limiting post-engagement domestic work. Source

Primary sources

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What the statute says for these facts

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The person who would sign

Several statutes treat contractors differently.

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