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Bill > S1688


NJ S1688

Prohibits certain non-disclosure and non-disparagement provisions in employment contracts.


summary

Introduced
01/09/2024
In Committee
03/03/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

Prohibits certain non-disclosure and non-disparagement provisions in employment contracts.

AI Summary

This bill amends existing New Jersey law to further restrict non-disclosure and non-disparagement provisions in employment contracts related to discrimination, retaliation, or harassment claims. Specifically, the bill prohibits employment contracts from including provisions that waive an employee's rights to discuss or pursue claims of workplace discrimination, making such clauses unenforceable and against public policy. The legislation expands on previous laws by explicitly stating that non-disclosure and non-disparagement agreements cannot prevent employees from revealing details about discrimination claims, even if the employer becomes identifiable through those disclosures. The bill requires settlement agreements to include a prominent notice explaining that confidentiality provisions are unenforceable if an employee publicly reveals identifying details. However, the law still allows employers to create agreements that protect legitimate business interests, such as preventing competition or protecting genuine trade secrets, business plans, and customer information. Notably, the bill also clarifies that collectively bargained agreements may still include mediation or arbitration provisions for discrimination claims. The legislation takes effect immediately and applies to all employment contracts entered into, renewed, modified, or amended after its effective date.

Committee Categories

Labor and Employment

Sponsors (2)

Last Action

Reported from Senate Committee with Amendments, 2nd Reading (on 03/03/2025)

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