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New Jersey Non-Compete Agreement Template

Without a general non-compete statute, New Jersey leaves enforceability to the courts, which uphold covenants that protect trade secrets, confidential information or customer relationships without unduly burdening the employee or harming the public. Courts may narrow overbroad terms, and sale-of-business covenants get more leeway, but repeated proposals to ban most non-competes mean you should check for new legislation.

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New Jersey rules to know

  • Reasonableness test from case law

    New Jersey has no general non-compete statute. Courts enforce a covenant if it protects a legitimate interest, such as trade secrets, confidential information or customer relationships, does not impose undue hardship on the employee, and does not harm the public.

    Solari Industries v. Malady, 55 N.J. 571 (1970)

  • Courts may partially enforce

    New Jersey courts may narrow an overbroad restriction and enforce it to the extent reasonable in time, area and scope, rather than voiding it. Courts generally will not enforce a covenant that only restrains ordinary competition.

    Whitmyer Bros. v. Doyle, 58 N.J. 25 (1971)

  • Sale-of-business covenants get more leeway

    Non-competes given by a seller when selling a business are generally enforced more readily than employee non-competes, because they protect the goodwill the buyer paid for. They still must be reasonable in duration and territory.

    New Jersey case law

  • A ban has been proposed repeatedly

    Bills to ban most non-competes, some retroactively, have been introduced every session since 2022; one cleared an Assembly committee in December 2025 but was not enacted before the session ended, and none had become law as of October 2026. Check for new legislation before signing.

    N.J. A5708 / S4385 (2024-2025 session)

Last updated 2026-10-05

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Our New Jersey Non-Compete Agreement template as a Word document — a general starting point you fill in yourself. Sign in free to download it.

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What a non-compete agreement covers

  • Restricted activities and competitors
  • Duration and geographic scope
  • Non-solicitation of customers and employees
  • Consideration given for the restriction
  • Remedies and reformation
  • Governing law and venue

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Frequently asked questions

Will a New Jersey court enforce a non-compete that just blocks competition?
Generally not. New Jersey courts will not enforce a covenant that only restrains ordinary competition. It must protect a legitimate interest such as trade secrets, confidential information or customer relationships. If a restriction is overbroad, courts may narrow it and enforce it to the extent reasonable in time, area and scope.
Are New Jersey non-competes easier to enforce when a business is sold?
Generally yes. A non-compete given by a seller of a New Jersey business is generally enforced more readily than an employee non-compete, because it protects the goodwill the buyer paid for. It still must be reasonable in duration and territory, so avoid open-ended terms.
Has New Jersey passed a law banning non-competes?
Not as of October 2026. Bills to ban most non-competes, some retroactively, have been introduced every session since 2022. One cleared an Assembly committee in December 2025 but was not enacted before the session ended. Because some proposals would apply retroactively, check for new legislation before signing.
Are non-competes enforceable?
It depends heavily on the state. A few states ban most employee non-competes outright, others cap them by salary, duration or industry, and many enforce only restrictions that are reasonable in time, area and scope.
What's the difference between a non-compete and a non-solicit?
A non-compete stops someone working for a competitor or starting a competing business. A non-solicit only stops them from poaching your customers or staff. Non-solicits are enforceable in more places, but not everywhere.
Can I use a non-compete when selling my business?
Usually yes. Sale-of-business non-competes are treated much more favourably than employee ones, even in states that otherwise ban non-competes.

Non-Compete Agreement in other states

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