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Bill > S2531


NJ S2531

NJ S2531
Prohibits certain non-disclosure and non-disparagement provisions in employment contracts.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

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 law 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. The bill provides that a collective bargaining agreement may contain provisions requiring mediation or arbitration of a claim of discrimination, retaliation, or harassment, but only if they are in compliance with section 2 of P.L.2019, c.39 (C.10:5-12.8), which prohibits any employment contract or settlement which has the purpose of concealing details related to such a claim. The bill codifies the New Jersey Supreme Court decision in Savage v. Twp. of Neptune, 257 N.J. 204 (2024), in which the Court held that a non-disparagement clause relating to claims of discrimination, retaliation, or harassment in an employment agreement is against public policy and cannot be enforced.

AI Summary

This bill clarifies and strengthens existing laws to prohibit certain restrictive clauses in employment contracts, particularly those that aim to conceal details of discrimination, retaliation, or harassment claims. It explicitly states that any provision in an employment contract waiving rights or remedies related to such claims, including non-disclosure (NDAs) and non-disparagement agreements, is against public policy and unenforceable. The bill removes an exception that previously allowed these provisions in collective bargaining agreements, but it does allow for mediation or arbitration of such claims within collectively bargained agreements, provided they still comply with the law's prohibition on concealing details of these claims. This legislation codifies a New Jersey Supreme Court decision that already deemed non-disparagement clauses related to these specific claims as unenforceable.

Committee Categories

Labor and Employment

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Labor Committee (on 01/13/2026)

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