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New Jersey’s unemployment rate remains stubbornly high at 9 percent, which is 1.4 percent above the national average. The pain is felt not only by workers, but by the State, which must pay out millions in unemployment benefits at a time when dollars are needed elsewhere. Legislators wrestling with the issue have proposed various bills in an effort to decrease the number of individuals receiving unemployment benefits. One such bill, A3970, has been introduced in the Assembly. The bill would render any agreement “not to compete, not to disclose or not to solicit” unenforceable as to any ex-employee who qualifies for unemployment benefits. Similar bills have been proposed in other states. One, in Minnesota, would completely ban noncompetition agreements except in connection with the sale of a business. A3970’s chances of passage are uncertain, but there appears to be support for it in the Assembly and Senate. The bill only applies, however, to agreements entered into following enactment.  Accordingly, it is expected that companies that desire to restrict the post-employment activities of key hires (who have access to confidential information) may accelerate efforts to have non-competition agreements executed, so as to avoid the effects of the bill’s passage.