For decades, the non-compete agreement has been a fundamental component of the South Jersey business landscape. Whether you are a specialized medical practice in Cherry Hill or a growing tech firm in Haddonfield, these restrictive covenants have served as a crucial tool for protecting your trade secrets, your client lists, and your competitive edge. But, as we approach the final weeks of 2025, the legal ground in Trenton is shifting significantly. At Ritigstein Law, we prioritize tracking these evolving standards to help our clients approach South Jersey’s changing legal landscape with a proactive and informed strategy.
On December 4, 2025, the New Jersey Assembly Labor Committee advanced Bill A5708. This sweeping legislation seeks to implement a near-total ban on worker non-compete agreements across the state. While the bill has not yet been signed into law, it has gained a level of momentum that we have not seen in previous years. As your dedicated South Jersey business lawyer, we believe that the most successful organizations are those that prepare for change before it becomes mandatory.
The proposed legislation is not merely a tweak to existing rules. It represents a paradigm shift in how New Jersey handles restrictive covenants. If this bill proceeds through the Senate and reaches the Governor’s desk before the current legislative session concludes on January 12, 2026, the traditional non-compete could become a thing of the past for the vast majority of your workforce. Our objective is to help your business develop a resilient strategy that accounts for the potential legislative outcomes in Trenton.
1. Understanding the Retroactive Reach and Notice Requirements
One of the most concerning aspects of Bill A5708 for many employers is its potential retroactive application. Unlike many new regulations that only apply to contracts signed after the effective date, the current version of this bill could render existing non-compete clauses void and unenforceable. This means the agreements you currently have on file for your staff might not protect you if the bill passes in its present form.
Furthermore, the bill includes a strict notice requirement. If enacted, employers would have only 30 business days to notify both current and former workers that their non-compete clauses are no longer legally valid. This is why we are advising our business owners in NJ to begin a comprehensive audit of their employment files now. By identifying which employees are currently subject to these restrictions, you can prepare the necessary communications and avoid the administrative scramble that a sudden change in law would create.
Waiting for the final vote is a risky strategy. Even if the bill is amended or delayed, the trend toward limiting non-competes is undeniable. A proactive review of your employment contracts allows us to identify where your business is most vulnerable and ensure that your other protective measures are up to the task.
2. Navigating the Narrow Senior Executive Exception
You may have heard that the proposed ban includes an exception for senior executives. While this is true, the window for this exception is incredibly narrow. To qualify as a senior executive under the current language of Bill A5708, a worker must meet a two-pronged test. First, they must hold a policy-making position, such as a CEO, president, or a similar officer with significant decision-making authority. Second, they must have earned total compensation of at least $151,164 in the preceding year.
Even for these high-level individuals, a non-compete is only valid if the employer complies with several new, rigorous standards. For instance, the employer must provide written disclosure of the terms within a specific timeframe and, perhaps most notably, must continue to pay the executive 100 percent of their salary and benefits during the entire restricted period. This requirement represents a substantial financial commitment that may lead many businesses in our region to reconsider the long-term viability of their current non-compete structures.
As your South Jersey contract review lawyer, we can help you evaluate your leadership structure to determine who truly qualifies for this exception. Relying on a broad interpretation of senior executive could lead to costly litigation down the road. It is far better to restructure these high-level agreements now than to find out in a courtroom that your key vice president does not meet the state's new definition.
3. Strengthening Your Alternative Protective Shields
If the traditional non-compete is no longer an option, how do you protect your business interests? The answer lies in shifting your focus from restricting a worker’s mobility to protecting your specific assets. New Jersey courts have historically been more supportive of agreements that protect trade secrets and client relationships than those that simply prevent a person from finding a new job.
At Ritigstein Law, there are three primary areas where we are helping South Jersey businesses bolster their protections:
- Non-Solicitation Agreements: These are designed to prevent former employees from poaching your hard-earned clients or employees. Because they are more narrowly tailored than a full non-compete, they are more likely to survive legal challenges.
- Confidentiality and NDAs: A robust Non-Disclosure Agreement (NDA) is essential. We work with our clients to ensure their NDAs specifically define what constitutes a trade secret or proprietary information in their unique industry.
- Digital Asset Security: Legal protections are only one part of the equation. We encourage businesses to review their internal data access policies. Ensuring that sensitive information is only accessible to those who truly need it can prevent a breach before it ever reaches the level of a legal dispute.
By focusing on these specific, targeted protections, you can build a more resilient business model that respects the modern legal environment while still guarding the intellectual property that makes your company successful.
The Role of Proactive Legal Strategy
The legislative environment in New Jersey is continuing to evolve rapidly, and the end of 2025 is bringing a high degree of uncertainty for employers. That said, uncertainty does not have to mean vulnerability. The move toward banning non-competes is part of a larger national trend aimed at increasing worker mobility, and New Jersey aims to position itself at the forefront of this movement.
When we work with our clients, we look beyond the immediate crisis. Leading this effort is our Founding Partner, Michael D. Ritigstein, who brings over 25 years of strategic insight as both a negotiator and a litigator. We help you build a comprehensive strategy that covers everything from initial hiring documents to exit interviews. Whether you are concerned about the current status of Bill A5708 or you simply want to ensure your business is on firm legal footing for the coming year, a thorough review of your contracts is the best place to start.
Our goal is to assist your South Jersey business in maintaining compliance with the law and staying positioned for growth. We understand the local market, and we understand the unique pressures facing business owners in South Jersey. Don't let a sudden change in Trenton leave your business unprotected.
Contact Ritigstein Law Today for a Consultation About Your Case
Navigating the complexities of employment law and restrictive covenants requires a deep understanding of both state statutes and recent case law. If you are concerned about how the potential 2026 non-compete ban will affect your operations, Michael Ritigstein and our team at Ritigstein Law are here to help. We can provide the clear, actionable guidance you need to protect your business interests in an ever-changing legal landscape.
Whether you need a comprehensive audit of your current employment agreements or a strategic plan for protecting your trade secrets in the future, we have the experience to guide you through the process. Reach out to us today to discuss your specific needs and ensure your business is prepared for whatever the new year brings.
Disclaimer: The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.
