NJ: State Bans Non-Disclosure Provisions in Settlement Agreements for Discrimination, Retaliation, and Harassment

Last month, New Jersey adopted a law banning certain waivers of rights in employment contracts, as well as non-disclosure provisions in employment contracts and settlement agreements. 

Specifically, the Law declares as against public policy and unenforceable:

• • any provision in an employment contract that waives an employee’s substantive or procedural right or remedy relating to a discrimination, retaliation, or harassment claim under the LAD (law against discrimination) or any other statute or case law (a so-called “waiver of rights” provision), and

  • nondisclosure provisions in employment contracts and settlement agreements that conceal the details relating to a claim of discrimination, retaliation, or harassment (so-called “NDA” provisions).

The National Law Review has the story.  In 2017, a bill that would have prohibited non-disclosure agreements in similar circumstances was introduced, but not passed, in Pennsylvania.