On October 3, 2022, the New Jersey Assembly passed a bill that will ban non-disparagement clauses in employment agreements. The bill will now be considered by the New Jersey Senate.
The bill amends a law passed in 2019, which prohibits employment agreements from containing provisions that waive any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment, including non-disclosure provisions. The bill was drafted in response to Savage vs. Township of Neptune, decided by the New Jersey Appellate Division in May. In Savage, the Appellate Division found that the 2019 law did not cover non-disparagement provisions and therefore settlement agreements for employment-law claims were permitted to contain such provisions.
We will continue to monitor the bill as it moves through the Senate.
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