By: Prema Roddam
Employers in New Jersey must take note of the new N.J. Senate Bill 121 that Governor Phil Murphy signed which became effective as of March 18, 2019. Employers must be cognizant of the provisions of this Bill as these will affect the way employment contracts, severance packages and settlement agreements are handled going forward. Agreements can be invalidated if found against public policy under this law.
The law limits employment contracts, severance packages and settlement agreements in several ways. The law’s interpretation can hold a non-disclosure clause unenforceable if it conceals details or if it waives any substantive or procedural rights or remedy for claims related to discrimination, harassment or retaliation. These could be rights such as the right to a court and jury trial or even barring mandatory workplace arbitration provisions.
This law will certainly impact the way in which we handle employment law cases going forward. Employers in New Jersey should consider reviewing and revising their agreements carefully to comply with this new law. This is also an ideal time to ensure your company’s HR practices and policies are designed to prevent harassment, discrimination and retaliation. If you would like more information on this new law or would like to have us review your agreements for compliance, please contact an attorney at our New Jersey office.
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