New Jersey: Update Arbitration and Non-Disclosure Agreements Immediately!


All Employers with NJ Employees


March 18, 2019


Contact HR On-Call

(888) 378-2456

Recently enacted Senate Bill 121 prohibits nondisclosure agreements from concealing claims of discrimination, harassment, and retaliation. Interestingly, such terms are not enforceable against current or former employees, but they are enforceable against the employer, unless the employee discloses enough information to make the employer “reasonably identifiable.”

The bill also prohibits any agreement that waives substantive or procedural rights or remedies in discrimination, harassment, and retaliation cases (e.g., right to a jury trial). Employers may not retaliate against employees who refuse to enter into such agreements. There is also an additional notice requirement in settlement agreements for discrimination, harassment, and retaliation claims. The bill applies to all agreements entered into on or after March 18th. Notably, the bill does not apply to collective bargaining agreements.

Action Items

  1. Review the bill here.
  2. Have nondisclosure and arbitration agreements updated by legal counsel immediately.
  3. Have settlement agreements prepared by legal counsel for compliance.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

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