New jersey non compete law enforces non competes only when they are reasonable: new Jersey has no non compete statute; the New Jersey Supreme Court’s Solari/Whitmyer test (1970-71) enforces a covenant only if it protects a legitimate employer interest (customer relationships, trade secrets, confidential information — not ordinary skills), imposes no undue hardship on the worker and does not injure the public,
and courts may narrow an overbroad covenant and enforce it as narrowed.
Bills to limit non competes have been introduced repeatedly and none has passed. This guide gives the exact New Jersey non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one.
Rules verified against the statute on 2026-10-08; confirm the current rule with New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance or an attorney before you rely on it.
New Jersey Non Compete Law at a Glance
| Status | Enforceable if reasonable (common law) |
| Income threshold | No earnings threshold |
| Statute | Common law: Solari Industries v. Malady, 55 N.J. 571 (1970); Whitmyer Bros. v. Doyle, 58 N.J. 25 (1971); N.J.A.C. 13:42-10.16 (psychologists) |
| Notice / consideration | Continued employment has been accepted as consideration; courts weigh why the job ended — a worker who was let go faces less hardship scrutiny against them than one who quit |
| Carve-outs | Licensed psychologists (clients’ freedom to choose their therapist); lawyers (court rules); courts have cut a physician’s radius where patients would lose… |
| Overbroad terms | reform — a court may modify (blue pencil) an overbroad covenant when reasonable to do so and enforce it as modified (Solari) |
| In effect since | common law since Solari (1970); 2024-2026 reform bills (S1688 / A1650) not enacted |
In This New Jersey Non Compete Law Guide:
Is a Non Compete Enforceable Under New Jersey Non Compete Law?
New Jersey has no non compete statute; the New Jersey Supreme Court’s Solari/Whitmyer test (1970-71) enforces a covenant only if it protects a legitimate employer interest (customer relationships, trade secrets, confidential information — not ordinary skills), imposes no undue hardship on the worker and does not injure the public, and courts may narrow an overbroad covenant and enforce it as narrowed.
Bills to limit non competes have been introduced repeatedly and none has passed. The statute is Common law: Solari Industries v. Malady, 55 N.J. 571 (1970); Whitmyer Bros. v. Doyle, 58 N.J. 25 (1971); N.J.A.C. 13:42-10.16 (psychologists). The carve-outs matter: licensed psychologists (clients’ freedom to choose their therapist); lawyers (court rules); courts have cut a physician’s radius where patients would lose access.
New Jersey Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Enforceable if reasonable (common law) |
| What the rule says | New Jersey has no non compete statute; the New Jersey Supreme Court’s Solari/Whitmyer test (1970-71) enforces a covenant only if it protects a legitimate employer interest (customer relationships, trade secrets, confidential information — not ordinary skills), imposes no undue hardship on the worker and does not injure the public, and courts may narrow an overbroad covenant and enforce it as narrowed. Bills to limit non competes have been introduced repeatedly and none has passed. |
| Income threshold | No earnings threshold |
| Statute | Common law: Solari Industries v. Malady, 55 N.J. 571 (1970); Whitmyer Bros. v. Doyle, 58 N.J. 25 (1971); N.J.A.C. 13:42-10.16 (psychologists) |
| Notice or consideration rule | Continued employment has been accepted as consideration; courts weigh why the job ended — a worker who was let go faces less hardship scrutiny against them than one who quit |
| Carve-outs | Licensed psychologists (clients’ freedom to choose their therapist); lawyers (court rules); courts have cut a physician’s radius where patients would lose access |
| What a court does with an overbroad term | reform — a court may modify (blue pencil) an overbroad covenant when reasonable to do so and enforce it as modified (Solari) |
| In effect since | common law since Solari (1970); 2024-2026 reform bills (S1688 / A1650) not enacted |
The Reasonableness Test Under New Jersey Non Compete Law
New Jersey has no general non-compete statute, so courts apply a common-law reasonableness test. A court generally asks whether the agreement protects a real business interest of the employer, such as trade secrets, confidential information or customer relationships, and not just a wish to avoid competition. It then asks whether the agreement puts an undue hardship on the worker and whether it harms the public.
Duration, geographic area and the kind of work restricted are all weighed against what the employer actually needs.
New Jersey courts have often upheld restrictions of 1 to 2 years that are limited to the area where the employer actually does business and to work similar to the worker’s old job. Courts generally narrow broader restrictions instead of throwing them out entirely, for example a ban on working anywhere in the industry, a nationwide area or a longer period.
With an overbroad term the court will reform — a court may modify (blue pencil) an overbroad covenant when reasonable to do so and enforce it as modified (Solari).
New Jersey Non Compete Law If You Were Fired or Laid Off
New Jersey has no statute on this, but courts can consider how the job ended when they weigh hardship to the worker. A worker who was laid off or fired without cause may have a stronger hardship argument than one who quit, but the agreement is not automatically void, so confirm with a New Jersey employment attorney.
What the Employer Must Give Under New Jersey Non Compete Law
Continued employment has been accepted as consideration; courts weigh why the job ended — a worker who was let go faces less hardship scrutiny against them than one who quit New Jersey courts generally treat continued at-will employment as enough consideration for a non-compete signed by a current employee. A raise, bonus or promotion is not usually required, though it can strengthen the employer’s position.
Non Solicit and Non Disclosure Agreements Under New Jersey Non Compete Law
A non-solicit agreement only stops a worker from pursuing the former employer’s clients or staff, and a non-disclosure agreement only protects confidential information. Neither one blocks the worker from taking a job. New Jersey courts generally enforce these more readily than a full non-compete, especially when a client non-solicit covers only clients the worker actually dealt with.
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If You Already Signed One: New Jersey Non Compete Law in Practice
Read the agreement closely and note its length, area, the kinds of work it covers, and whether it applies no matter how the job ended. Tell the new employer about it, and consider asking the former employer for a written release or a narrower waiver before you start.
Because New Jersey courts decide these case by case, having a New Jersey employment attorney review the agreement before you accept the offer may help you understand your options.
In New Jersey, an employer may ask a court for an injunction ordering the worker to stop the competing work, and it may also seek money damages for losses it can prove. New Jersey generally follows the rule that each side pays its own attorney fees, so fees are usually recovered only if the agreement itself provides for them.
The Federal Rule and New Jersey Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so New Jersey non compete law controls.
In 2025 the Assembly Labor Committee advanced A5708, a bill that would broadly limit non-competes, on December 4, 2025, but it and its Senate companion S4385 lapsed when the session ended in January 2026. A similar bill, S1407, with Assembly companion A1829, was introduced on January 13, 2026, and as of the latest available reports it is still in committee and not law.
Other New Jersey Non Compete Law Rules to Know
When an agreement is too broad, New Jersey courts may narrow it to a reasonable length, area or scope instead of voiding it. Licensed psychologists are barred by regulation (N.J.A.C. 13:42-10.16) from entering restrictive covenants, and courts give non-competes for physicians extra public-interest scrutiny.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
New Jersey — the bottom line
- New jersey non compete law is a reasonableness test decided case by case — the first thing to check is which side of the line your agreement falls on.
- Under New Jersey non compete law, an overbroad term is reform — a court may modify (blue pencil) an overbroad covenant when reasonable to do so and enforce it as modified (Solari) — the words of your own agreement decide more than the headline rule.
- New jersey non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in New Jersey?
Sometimes. New Jersey has no non compete statute; the New Jersey Supreme Court’s Solari/Whitmyer test (1970-71) enforces a covenant only if it protects a legitimate employer interest (customer relationships, trade secrets, confidential information — not ordinary skills), imposes no undue hardship on the worker and does not injure the public, and courts may narrow an overbroad covenant and enforce it as narrowed.
Bills to limit non competes have been introduced repeatedly and none has passed.
Is there an income threshold under New Jersey non compete law?
No. New Jersey has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a New Jersey court do with an overbroad non compete?
Reform — a court may modify (blue pencil) an overbroad covenant when reasonable to do so and enforce it as modified (Solari).
Can my employer enforce a non compete in New Jersey after firing me?
New Jersey has no statute on this, but courts can consider how the job ended when they weigh hardship to the worker.
I signed a non compete in New Jersey and have a new offer — what should I do?
Read the agreement closely and note its length, area, the kinds of work it covers, and whether it applies no matter how the job ended. Tell the new employer about it, and consider asking the former employer for a written release or a narrower waiver before you start.
Official New Jersey Sources & Resources
- New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance: https://www.nj.gov/labor/wageandhour/
- New Jersey non compete statute: Common law: Solari Industries v. Malady, 55 N.J. 571 (1970); Whitmyer Bros. v. Doyle, 58 N.J. 25 (1971); N.J.A.C. 13:42-10.16 (psychologists)
- Verified source: https://www.ebglaw.com/assets/htmldocuments/uploads/2020/05/Thomson-Reuters-PLC-Non-Compete-Laws-New-Jersey-Mar-2020-Flynn-Levy.pdf
- Verified source: https://epstein.sitepilot11.firmseek.com/media/publication/65_Flynn-Levy-Non-Compete_Laws_New_Jersey_281-505-9155_29.pdf
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- New Jersey bar lawyer referral: https://njsba.com/?p=41605
This New Jersey non compete law guide was last verified against official New Jersey sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.