Gov. Phil Murphy on Monday signed a bill into law that restricts the use of nondisclosure agreements in employment contracts and settlement agreements. Cases involving discrimination, retaliation or harassment, including sexual assault and sexual harassment, fall under the new law.

Such agreements are featured in settlements in which the aggrieved party agrees not to pursue litigation or discuss terms of the deal in exchange for a sum of money. Under typical terms, if the NDA is violated, the other party may sue for injunctive relief to stop the release of information, and recover damages.

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