Employer's Legal Resource

Employment Law Update: Governor Murphy Signs New Law Regarding Employment Contracts and Settlement Agreements

3.20.2019

On March 18, 2019, Governor Murphy signed a law that prohibits the enforcement of any provisions in an employment contract that waive any substantive or procedural rights or relief regarding discrimination, retaliation, and/or harassment.

The new law also prohibits employers from enforcing non-disclosure provisions regarding discrimination, retaliation, and/or harassment in employment contracts and settlement agreements with current and former employees.  However, if an agreement contains a non-disclosure provision and the employee reveals information regarding the agreement in such a way that the employer is identifiable, the non-disclosure agreement will become unenforceable against the employer and the employer may discuss the matter/agreement. 

The law does not prohibit employers from requiring their employees to sign: (1) a restrictive covenant, with non-compete and/or non-solicitation provisions; or (2) a non-disclosure agreement regarding proprietary information.

Plaintiffs attorneys will interpret the new law to prohibit arbitration agreements and class action waivers in the employment context. However, the law will likely be challenged by employers as interfering/conflicting with the Federal Arbitration Act, which permits parties to agree to arbitration as a form of dispute resolution.

Additionally,  guidance through regulations and/or case law will need to be issued to determine whether the law invalidates class action waivers that employers have required employees to sign (such waivers were upheld as valid by the U.S. Supreme Court in the summer of 2018).  

More guidance will also be needed to determine the scope of the law as it is vague. We will continue to follow this law and will update you on developments in its interpretation.   If you have any questions regarding the new law, please contact the Employment Law Department at 732-352-9858.

BLOG DISCLAIMER

The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services.  Although we attempt to ensure that the postings are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness.  The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship.  Readers should not act upon this information without seeking professional legal counsel.

This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk.  We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability.  Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein.  We will remove a link to any site from this blog upon request of the linked entity.

We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.

If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com.  One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.

PRIVACY POLICY