STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Prohibits certain non-disclosure and non-disparagement provisions in employment contracts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning employment contracts and amending P.L.2019, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2019, c.39 (C.10:5-12.7) is amended to read as follows:
1. a. A provision in any employment contract that waives any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment, including, but not limited to, a non-disclosure or non-disparagement provision, or other similar agreement, shall be deemed against public policy and unenforceable.
b. No right or remedy under the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.) or any other statute or case law shall be prospectively waived.
c. [This section shall not apply to the terms of any collective bargaining agreement between an employer and the collective bargaining representative of the employees.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
(cf: P.L.2019, c.39, s.1)
2. Section 2 of P.L.2019, c.39 (C.10:5-12.8) is amended to read as follows:
2. a. A provision in any employment contract or settlement agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment, including, but not limited to, a non-disclosure or non-disparagement provision, or other similar agreement, (hereinafter referred to as a "non-disclosure or non-disparagement provision") shall be deemed against public policy and unenforceable against a current or former employee (hereinafter referred to as an "employee") who is a party to the contract or settlement. If the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable, then the non-disclosure or non-disparagement provision shall also be unenforceable against the employer.
b. Every settlement agreement resolving a discrimination, retaliation, or harassment claim by an employee against an employer shall include a bold, prominently placed notice that although the parties may have agreed to keep the settlement and underlying facts confidential, such a provision in an agreement is unenforceable against the employer if the employee publicly reveals
sufficient details of the claim so that the employer is reasonably identifiable.
c. Notwithstanding any other provision of law to the contrary, this section shall not be construed to prohibit an employer from requiring an employee to sign an agreement:
(1) in which the employee agrees not to enter into competition with the employer during or after employment; or
(2) in which the employee agrees not to disclose proprietary information, which includes only non-public trade secrets, business plan and customer information.
(cf: P.L.2019, c.39, s.2)
3. This act shall take effect immediately and shall apply to all contracts and agreements entered into, renewed, modified, or amended on or after the effective date.
STATEMENT
This bill bars provisions in employment contracts that waive certain rights or remedies. Specifically, the bill clarifies that the current law on non-disclosure provisions also prohibits certain non-disparagement provisions in employment contracts.
The bill also removes a provision of current that provides that the prohibition on non-disclosure agreements does not apply to the terms of any collective bargaining agreement between an employer and the collective bargaining representative of the employees.