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Bill

Bill

S 1407

Prohibits non-compete clauses.

2026-2027 Regular Session Introduced by Joe Cryan and 1 co-sponsor

New Jersey bill prohibits employers from enforcing non-compete agreements, expanding worker mobility and job-switching freedom while potentially reducing employer leverage over employee retention.

Introduced in the Senate, Referred to Senate Labor Committee
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WeVote Research Nonpartisan
Bill Summary · S 1407

Legislative bill overview

S 1407 would prohibit employers in New Jersey from enforcing non-compete agreements against employees. The bill aims to prevent workers from being restricted from working for competitors or starting competing businesses after leaving their current job. This represents a significant shift in employment law, as non-compete clauses have been a standard contractual tool for employers.

Why is this important

Non-compete agreements currently restrict worker mobility and can limit job opportunities, particularly affecting lower-wage workers who may lack bargaining power to negotiate these terms. Eliminating them could increase wage competition among employers, potentially boost worker earnings, and reduce barriers to entrepreneurship. Conversely, employers argue these clauses protect legitimate business interests like trade secrets and client relationships.

Potential points of contention

  • Business protection vs. worker freedom: Employers may argue non-competes protect proprietary information and client relationships, while workers' advocates say they unfairly restrict earning potential
  • Scope and alternatives: Debate over whether the ban should include exceptions for high-level executives or whether non-solicitation clauses (which restrict recruiting former colleagues) should remain permitted
  • Economic competitiveness: Questions about whether eliminating non-competes helps or hurts New Jersey's business climate and startup ecosystem

Compiled from official sources — confirm details with the bill’s official record.

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