SENATE LABOR COMMITTEE
STATEMENT TO
SENATE, No. 1688
with committee amendments
STATE OF NEW JERSEY
DATED: MARCH 3, 2025
The Senate Labor Committee reports favorably and with committee amendments Senate Bill No. 1688.
This bill bars provisions in employment contracts that waive certain rights or remedies. Specifically, the bill clarifies that the current law on non-disclosure provisions also prohibits certain non-disparagement provisions in employment contracts.
The bill also removes a provision of current law that provides that the prohibition on non-disclosure agreements does not apply to the terms of any collective bargaining agreement between an employer and the collective bargaining representative of the employees.
As amended, the bill provides that a collective bargaining agreement may contain provisions requiring mediation or arbitration of a claim of discrimination, retaliation, or harassment, but only if they are in compliance with section 2 of P.L.2019, c.39 (C.10:5-12.8), which prohibits any employment contract or settlement which has the purpose of concealing details related to such a claim.
This bill codifies the New Jersey Supreme Court decision in Savage v. Twp. of Neptune, 257 N.J. 204 (2024), in which the Court held that a non-disparagement clause relating to claims of discrimination, retaliation, or harassment in an employment agreement is against public policy and cannot be enforced.
This bill was pre-filed for introduction in the 2024-2025 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:
The committee amendments provide that a collective bargaining agreement may contain provisions requiring mediation or arbitration of a claim of discrimination, retaliation, or harassment, but only if they are in compliance with section 2 of P.L.2019, c.39 (C.10:5-12.8), which prohibits any employment contract or settlement which has the purpose of concealing details related to such a claim.