Gov. Phil Murphy has signed a bill into law allowing college athletes in New Jersey to earn endorsement compensation.

The new law, known as the "New Jersey Fair Play Act," received final legislative approval in July.

Under the new law, a four-year institution of higher education is prohibited from upholding any limitation preventing college athletes from earning compensation from their name, image or likeness.

Earning such compensation will not affect the student's scholarship eligibility.

New Jersey is the 16th state to introduce the legislation. The law takes effect immediately and will be applicable in five years.