End of Bar on Non-disclosure Provisions in LAD Settlements: Why Both Sides Will Rejoice
Assembly Bill No. 4637 is an attempt to remedy the shortcomings of N.J.S.A. 10:5-12.8(a). It allows employees to decide for themselves whether being able to talk publicly and openly about allegations of discrimination against their employer is more important to them than being able to settle a case.
March 10, 2022 at 10:00 AM
7 minute read
Employment LawSince 2019, New Jersey employers have had difficult decisions to make when confronted with lawsuits from employees alleging claims arising under the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 to -50 (the LAD). Specifically, N.J.S.A. 10:5-12.8, enacted on March 18, 2019, mandates in relevant part that "[a] provision in any … settlement agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment … shall be deemed against public policy and unenforceable against a current or former employee … who is a party to the … settlement." See N.J.S.A. 10:5-12.8(a). This statute otherwise stipulates that if an employee were to "reveal[] sufficient details of the claim so that the employer is reasonably identifiable, then the non-disclosure provision shall also be unenforceable against the employer." See ibid.
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