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A1379
ASSEMBLY, No. 1379
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
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)
�����
d.�� Notwithstanding
subsection a. of this section, any employment contract that is a result of a
collectively bargained agreement may contain a provision requiring mediation or
arbitration of a claim of discrimination, retaliation, or harassment.� Section
2 of P.L.2019, c.39 (C.10:5-12.8) shall apply to any collectively bargained
agreement to mediate or arbitrate a claim of discrimination, retaliation, or
harassment.
(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 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.
���� In addition, the bill, permits
mediation or arbitration clauses to be included in an employment contract that
is a result of a collectively bargained agreement for claims related to
discrimination, retaliation, or harassment.