Sponsored by:
Assemblyman PETER J. BARNES, III
District 18 (Middlesex)
Assemblyman JOSEPH V. EGAN
District 17 (Middlesex and Somerset)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Limits enforcement of certain employment contracts of individuals eligible for unemployment compensation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain employment contracts and unemployment compensation, and supplementing chapter 21 of Title 43 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An unemployed individual found to be eligible to receive benefits pursuant to the “unemployment compensation law,” R.S.43:21-1 et seq., shall not be bound by any covenant, contract, or agreement, entered into with the individual’s most recent employer, not to compete, not to disclose, or not to solicit. This section shall not be construed to apply to any covenant, contract, or agreement in effect on or before the date of enactment of P.L. , c. (C. )(pending before the Legislature as this bill).
2. This act shall take effect immediately.
STATEMENT
This bill will invalidate any covenant, contract, or agreement not to compete, not to disclose, or not to solicit, entered into by an individual with the individual’s most recent employer, if the individual is found to be eligible for unemployment insurance benefits pursuant to the “unemployment compensation law,” N.J.S.A.43:21-1 et seq. The bill stipulates that the provisions of the bill will not apply to any covenant, contract, or agreement in effect on or before the date of the bill’s enactment.