Are Non-Competes Enforceable in New Jersey?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable if reasonable
No statute; reasonable covenants enforced, may be narrowed
New Jersey has no general non-compete statute. Courts enforce a covenant that protects a legitimate employer interest, imposes no undue hardship on the employee and does not injure the public, and may enforce an overbroad covenant fully, partly or not at all as reasonable. Licensed psychologists may not enter business agreements that restrict a client's ability to keep seeing the therapist of their choice.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
New Jersey enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- New Jersey: No statute; reasonable covenants enforced, may be narrowed.
Other New Jersey rules to check
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
New Jersey non-compete rules
- Statute
- No general non-compete statute — court decisions govern.
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Profession-specific rules
- LimitedLicensed psychologists may not enter any business agreement that interferes with a client's ability to see or keep seeing the therapist of their choice. N.J.A.C. 13:42-10.16 (via LII)
Recent and pending changes
Pending: S1407 (2026-2027 session), which would prohibit most non-compete clauses, was introduced and referred to the Senate Labor Committee on January 13, 2026, with no further action.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in New Jersey?
No statute; reasonable covenants enforced, may be narrowed. New Jersey has no general non-compete statute. Courts enforce a covenant that protects a legitimate employer interest, imposes no undue hardship on the employee and does not injure the public, and may enforce an overbroad covenant fully, partly or not at all as reasonable. Licensed psychologists may not enter business agreements that restrict a client's ability to keep seeing the therapist of their choice.
Did the FTC ban non-competes in New Jersey?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable if reasonable): Alaska, Arizona, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky
Protect information instead with a confidentiality agreement (NDA generator), or hiring in New Jersey? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in New Jersey.