Clarifies that punitive damages may not be awarded against public entities or public employees acting within the scope of their employment in any action.

S3315

SENATE, No. 3315

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

SYNOPSIS

���� Clarifies that punitive damages may not be awarded
against public entities or public employees acting within the scope of their
employment in any action.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning awarding punitive damages and amending P.L.1995, c.142, P.L.1945,
c.169, P.L.1986, c.105, and N.J.S.59:9-2.

����
Be It Enacted

by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 5 of P.L.1995,
c.142 (C.2A:15-5.13) is amended to read as follows:

���� 5.��� a.�� Any actions
involving punitive damages shall, if requested by any defendant, be conducted
in a bifurcated trial.

���� b.��� In the first stage of a
bifurcated trial, the trier of fact shall determine liability for compensatory
damages and the amount of compensatory damages or nominal damages.� Evidence
relevant only to the issues of punitive damages shall not be admissible in this
stage.

���� c.���� Punitive damages may be
awarded only if compensatory damages have been awarded in the first stage of
the trial.� An award of nominal damages cannot support an award of punitive
damages.

���� d.��� In the second stage of a
bifurcated trial, the trier of fact shall determine if a defendant is liable
for punitive damages.

���� e.���� In any action in which
there are two or more defendants, an award of punitive damages must be specific
as to a defendant, and each defendant is liable only for the amount of the
award made against that defendant.

����
f.���� No public entity is
liable for punitive damages.� No public employee acting within the scope of his
employment is liable for punitive damages.� For purposes of this section,
"public entity" means a public entity as defined in N.J.S.59:1-3 and "public
employee" means a public employee as defined in N.J.S.59:1-3.

(cf: P.L.1995, c.142, s.5)

���� 2.��� Section 12 of P.L.1945,
c.169 (C.10:5-13) is amended to read as follows:

���� 12. a. (1) Any person claiming
to be aggrieved by an unlawful employment practice or an unlawful
discrimination may, personally or by an attorney-at-law, make, sign, and file
with the division a verified complaint in writing which shall state the name and
address of the person, employer, labor organization, employment agency, owner,
lessee, proprietor, manager, superintendent, or agent alleged to have committed
the unlawful employment practice or unlawful discrimination complained of and
which shall set forth the particulars thereof and shall contain such other
information as may be required by the division.� Upon receipt of the complaint,
the division shall notify the complainant on a form promulgated by the director
of the division and approved by the Attorney General of the complainant's
rights under P.L.1945, c.169 (C.10:5-1 et seq.), including the right to file a
complaint in the Superior Court to be heard before a jury; of the
jurisdictional limitations of the division; and any other provisions of P.L.1945,
c.169 (C.10:5-1 et seq.), without interpretation, that may apply to the
complaint. The Commissioner of Labor and Workforce Development, the Attorney
General, the director, or the Commissioner of Education may, in like manner,
make, sign, and file such complaint.� Any employer whose employees, or some of
them, refuse, or threaten to refuse to cooperate with the provisions of
P.L.1945, c.169 (C.10:5-1 et seq.), may file with the division a verified
complaint asking for assistance by conciliation or other remedial action.

���� (2)�� Any complainant,
including any person claiming to be aggrieved by an unlawful employment
practice or an unlawful discrimination, the Attorney General, the director, the
Commissioner of Labor and Workforce Development, or the Commissioner of
Education, may initiate suit in Superior Court under P.L.1945, c.169 (C.10:5-1
et seq.) without first filing a complaint with the division or any municipal
office. In such proceedings:

���� (a)�� Upon the application of
any party, a jury trial shall be directed to try the validity of any claim
under P.L.1945, c.169 (C.10:5-1 et seq.) specified in the suit.

���� (b)�� All remedies available
in common law tort actions shall be available to prevailing plaintiffs,
except
that punitive damages shall not be awarded against public entities or public
employees acting within the scope of their employment as provided in
N.J.S.59:9-2,
and if the Attorney General or the director is a prevailing
plaintiff, those remedies shall be available on behalf of named or unnamed
victims. If the suit seeks relief for one or more unnamed members of a
protected class, the Attorney General or the director shall have the discretion
to settle the suit on such terms as the Attorney General or the director deems
appropriate. The injunctive relief set forth in section 16 of P.L.1945, c.169
(C.10:5-17) shall also be available to prevailing plaintiffs.� These remedies
are in addition to any other provided by P.L.1945, c.169 (C.10:5-1 et seq.) or
any other statute.

���� (c)�� In addition to the
remedies set forth in subparagraph (b) of this paragraph, the Attorney General
or director may seek and obtain from the Superior Court penalties pursuant to
section 2 of P.L.1983, c.412 (C.10:5-14.1a).� In the alternative, in lieu of these
penalties, the Attorney General or director may seek and obtain punitive
damages payable to the State upon a finding that the provisions of P.L.1995,
c.142 (C.2A:15-5.9 et al.) are satisfied.

���� Prosecution of such suit in
Superior Court under P.L.1945, c.169 (C.10:5-1 et seq.) shall bar the filing of
a complaint with the division or any municipal office during the pendency of
any such suit.

���� (d)�� If a jury or court
determines that an employer has committed an unlawful employment practice
prohibited by subsection r. or t. of section 11 of P.L.1945, c.169 (C.10:5-12),
the judge shall award three times any monetary damages to the person or persons
aggrieved by the violation.

���� (e)�� Notwithstanding the
provisions of section 6 of P.L.1979, c.404 (C.10:5-27.1), if the Attorney
General or the director is a prevailing plaintiff, the court shall award
reasonable attorney's fees and litigation and investigation costs.

���� b.��� At any time after 180
days from the filing of a complaint with the division, a complainant may file a
request with the division to present the action personally or through counsel
to the Office of Administrative Law.� Upon such request, the director of the
division shall file the action with the Office of Administrative Law, provided
that no action may be filed with the Office of Administrative Law where the
director of the division has found that no probable cause exists to credit the
allegations of the complaint or has otherwise dismissed the complaint.

���� c.���� A party to an action
based upon a violation of P.L.1945, c.169 (C.10:5-1 et seq.) shall mail a copy
of the initial pleadings or claims, amended pleadings or claims, counterclaims,
briefs, and legal memoranda to the division at the same time as filing such
documents with the Office of Administrative Law or the court.� Upon application
to the Office of Administrative Law or to the court wherein the matter is
pending, the division shall be permitted to intervene.

(cf: P.L.2019, c.436, s.5)

���� 3.��� Section 5 of P.L.1986,
c.105 (C.
34:19-5
) is amended to read as follows:

���� 5.��� Upon a violation of any
of the provisions of this act, an aggrieved employee or former employee may,
within one year, institute a civil action in a court of competent
jurisdiction.� Upon the application of any party, a jury trial shall be
directed to try the validity of any claim under this act specified in the
suit.� All remedies available in common law tort actions shall be available to
prevailing plaintiffs
except that punitive damages shall not be awarded
against public entities or public employees acting within the scope of their
employment as provided in N.J.S.59:9-2
. These remedies are in addition to
any legal or equitable relief provided by this act or any other statute.� The
court shall also order, where appropriate and to the fullest extent possible:

���� a.���� An injunction to
restrain any violation of this act which is continuing at the time that the
court issues its order;

���� b.��� The reinstatement of the
employee to the same position held before the retaliatory action, or to an
equivalent position;

���� c.���� The reinstatement of
full fringe benefits and seniority rights;

���� d.��� The compensation for all
lost wages, benefits and other remuneration; and

���� e.���� The payment by the
employer of reasonable costs, and attorney's fees.

���� In addition, the court or jury
may order: the assessment of a civil fine of not more than $10,000 for the
first violation of the act and not more than $20,000 for each subsequent
violation, which shall be paid to the State Treasurer for deposit in the General
Fund; punitive damages
except against public entities or public employees
acting within the scope of their employment as provided in N.J.S.59:9-2
; or
both a civil fine and punitive damages.� In determining the amount of punitive
damages, the court or jury shall consider not only the amount of compensatory
damages awarded to the employee, but also the amount of all damages caused to
shareholders, investors, clients, patients, customers, employees, former
employees, retirees or pensioners of the employer, or to the public or any governmental
entity, by the activities, policies or practices of the employer which the
employee disclosed, threatened to disclose, provided testimony regarding,
objected to, or refused to participate in.

(cf: P.L.2005, c.329, s.2)

���� 4.��� N.J.S.59:9-2 is amended
to read as follows:

���� 59:9-2. a. No interest shall
accrue prior to the entry of judgment against a public entity or public
employee.

���� b.��� No judgment shall be
granted against a public entity or public employee on the basis of strict
liability, implied warranty, or products liability.

���� c.���� No punitive or
exemplary damages shall be awarded against a public entity
or public
employee acting within the scope of his employment in any action regardless of
the applicability of other remedies available in common law or pursuant to
statutory law, including, but not limited to, any actions under the "Law
Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.) and the
"Conscientious Employee Protection Act," P.L.1986, c.105 (C.34:19-1
et seq.)
.

���� d. (1) Except as provided in
this subsection, no damages shall be awarded against a public entity or public
employee for pain and suffering resulting from any injury.

���� (2) The limitation on the
recovery of damages for pain and suffering pursuant to paragraph (1) of this
subsection shall not apply:

���� (a) in cases of permanent loss
of a bodily function, permanent disfigurement, or dismemberment where the
medical treatment expenses are in excess of $3,600.00; or

���� (b) to an action at law filed
pursuant to section 7 of P.L.2019, c.120 (C.59:2-1.3).

���� For purposes of this section,
"medical treatment expenses" are defined as the reasonable value of
services rendered for necessary surgical, medical, and dental treatment of the
claimant for such injury, sickness, or disease, including prosthetic devices
and ambulance, hospital, or professional nursing service.

���� e.���� If a claimant receives
or is entitled to receive benefits for the injuries allegedly incurred from a
policy or policies of insurance or any other source other than a joint
tortfeasor, such benefits shall be disclosed to the court and the amount
thereof which duplicates any benefit contained in the award shall be deducted
from any award against a public entity or public employee recovered by such
claimant, provided, however, that nothing in this provision shall be construed
to limit the rights of a beneficiary under a life insurance policy.� No insurer
or other person shall be entitled to bring an action under a subrogation
provision in an insurance contract against a public entity or public employee.

(cf: P.L.2025, c.29, s.2)

���� 5.��� This act shall take
effect immediately and shall apply to causes of action pending or filed on or
after the effective date.

STATEMENT

���� This bill amends the �New
Jersey Tort Claims Act,� N.J.S.59:1-1 et seq., to clarify that the legislative
intent of the prohibition against the awarding of punitive damages against
either a public entity or public employee, acting within the scope of his employment,
applies in every action, regardless of the applicability of other remedies
available in common law or pursuant to other statutory law.� The bill
specifically mentions the �Law Against Discrimination,� P.L.1945, c.169
(C.10:5-1 et seq.) (hereafter, LAD), and the �Conscientious Employee Protection
Act,� P.L.1986, c.105 (C.34:19-1 et seq.) (hereafter, CEPA), since a court
decision previously held to the contrary regarding these two enactments.�
See

Abbamont
v.
Piscataway
Township
Bd. of Educ
., 138
N.J.

405 (1994).

���� The bill also amends section 5
of P.L.1995, c.142

(C:2A:15-5.13) concerning punitive damages generally, and the specific sections
of the LAD and CEPA that provide prevailing plaintiffs in these statutory-based
actions �all remedies [also] available in common law tort,� to clarify that
such remedies do not include punitive damages against public entities or public
employees acting within the scope of their employment.

���� This bill would not permit the
awarding of punitive damages because ultimately it is the local taxpayer who
will bear these costs.� The sponsor believes that the reasons for awarding
punitive damages generally do not outweigh the public policy considerations of
financially burdening citizens at large when a public entity or public
employee, acting within the scope of the employee�s employment, is involved.