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Non-Compete Laws in New Jersey

New Jersey courts enforce an employee non-compete if it protects the employer's legitimate interests, imposes no undue hardship on the employee and does not harm the public, and may partially enforce an overbroad one.

Last checked . General information, not legal advice.

New Jersey at a glance

Status
Enforceable if reasonable (case law)
Under Solari Industries v. Malady (1970), courts may partially enforce an overbroad covenant.
Enforceable against employees
Yes, if reasonable

Sources

Last checked

The rules in New Jersey

Are employee non-compete agreements banned, restricted or enforceable in New Jersey?

Status in New Jersey: Enforceable if reasonable (case law). Under Solari Industries v. Malady (1970), courts may partially enforce an overbroad covenant.

Can an employer enforce a non-compete against an employee in New Jersey?

Yes, if reasonable. Enforceable against employees in New Jersey: yes, if reasonable.

Where do the New Jersey non-compete laws come from?

The rules above come from Solari Industries, Inc. v. Malady, 55 N.J. 571 (1970). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.