New Jersey Noncompete Ban Clears Major Legislative Hurdle

A New Jersey bill that would ban most worker noncompete restrictive covenants (A5708) cleared the Assembly Labor Committee on December 4, 2025, in a bipartisan 8-2 vote. On the same day, the bill was referred to the Assembly Regulated Professions Committee and may be headed to the Assembly floor before the Legislature adjourns on January 12, 2026. An identical companion bill in the New Jersey Senate (S4385) was introduced on May 19, 2025, but remains in the Senate Labor Committee.

After several years of similar proposed legislation dying in the Legislature, this bill’s momentum signals potential passage for several reasons: (1) Governor Murphy may want to end his term with this marquee employee-friendly legislation; (2) the Federal Trade Commission recently abandoned its federal noncompete ban, leaving states to take the lead on efforts to increase employee mobility; (3) the bill sponsor chairs the Assembly Labor Committee; and (4) the bill passed in committee with bipartisan support.