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

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 18^th. Notably, the bill does not apply to collective bargaining agreements.