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A new bill which is scheduled to be considered on Monday, December 18 in the Assembly Judiciary Committee would bar provisions in employment contracts that waive certain rights or remedies and bars certain agreements that conceal details relating to discrimination claims.

Under A-5287 (McKeon), employment contract provisions that waive any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment are deemed against public policy and unenforceable.

The bill provides that no right or remedy under the New Jersey “Law Against Discrimination,” or any other statute or case law could be prospectively waived.

The bill also specifies that:

  • A provision in any employment contract or agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment, including claims that are submitted to arbitration, is deemed against public policy and unenforceable
  • A person who enforces or attempts to enforce such a provision would be liable for the employee’s reasonable attorney fees and costs
  • No adverse or retaliatory action can be against someone if the person refuses to enter into an agreement or contract that contains a provision against public policy and unenforceable under the bill

The bill does not apply collective bargaining agreements.

The bill would take effect immediately and apply to all contracts and agreements entered into, renewed, modified, or amended on or after the effective date.

We would like to hear from you regarding any issues or concerns you might have with this bill. Thank you for your input.

Mary

Government Affairs News

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