ASSEMBLY, No. 3997

STATE OF NEW JERSEY

222nd LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

 


 

Sponsored by:

Assemblywoman  KATIE BRENNAN

District 32 (Hudson)

Assemblywoman  YVONNE LOPEZ

District 19 (Middlesex)

Assemblyman  STERLEY S. STANLEY

District 18 (Middlesex)

 

Co-Sponsored by:

Assemblywoman Reynolds-Jackson

 

 

 

 

SYNOPSIS

     Prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act prohibiting class action waivers in residential rental agreements for claims arising from violations of rent control laws and supplementing Title 56 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Any provision in a residential rental agreement that purports to waive, limit, or restrict a tenant’s right to participate as a class representative or class member in any class action suit arising from violations of any rent control law shall be deemed void and unenforceable.  This prohibition shall apply regardless of when the class action waiver was executed, and regardless of whether it appears in an initial lease, or a subsequent addendum.  In addition to the penalty established pursuant to subsection b. of section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the inclusion of such class action waiver in a rental agreement shall be prima facie evidence of a violation of the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.).

 

     2.    A tenant may not waive the rights established by P.L.     , c.    (pending before the Legislature as this bill).  Any purported waiver of rights established pursuant to P.L.     , c.    (pending before the Legislature as this bill) shall be void and unenforceable.

 

     3.    a.         A tenant who is subjected to a class action waiver, as prohibited by P.L.    , c.    (C.        ) (pending before the Legislature as this bill), is entitled to remedies as the prevailing party, including, but not limited to, a declaratory judgment finding the waiver void and unenforceable; an injunction prohibiting enforcement of the waiver; actual damages; and a reasonable attorney’s fees.  P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall not be construed to limit any other remedies available under State or federal law, including, but not limited to, P.L.1970, c.210 (C.2A:42-10.10 et seq.), commonly referred to as the Reprisal Law.

     b.    A landlord who violates a provision of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall be liable to a penalty of $1,000 per affected dwelling unit.

 

     4.    This act shall take effect immediately and shall be applicable to any residential rental agreement in effect on or after the effective date of this act, including a claim arising from a rent control violation that occurred before this effective date.

STATEMENT

 

     This bill prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws.

     Rent control ordinances serve a vital public purpose by preserving affordable housing, preventing displacement, and ensuring fair treatment of tenants.  The efficient enforcement of rent control laws requires access to collective legal remedies as individual claims for rent overcharges are often financially impractical for an individual tenant.

     The bill deems any provision in a residential rental agreement that waives, limits, or restricts a tenant’s right to participate as a class representative or class member in a class action suit arising from violations of rental control laws as void and unenforceable.  Any purported waiver of rights established by this bill is to be deemed void and unenforceable.  This bill establishes that the inclusion of a class action waiver within a rental agreement as prima facie evidence of a violation of the New Jersey consumer fraud act (CFA), P.L.1960, c.39 (C.56:8-1 et seq.). 

     A tenant that is subjected to a class action waiver, as prohibited by this bill, is entitled to several remedies, including, but not limited to, a declaratory judgment that the waiver be void and unenforceable, an injunction prohibiting enforcement of the waiver; actual damages; and reasonable attorney’s fees and costs.  In addition to a potential CFA violation for certain violations, a landlord found to be in violation of this bill is to be liable to a penalty of $1,000 per affected dwelling unit.  These remedies are cumulative and in addition to other remedies available under State and federal law.

     This bill should not be construed to invalidate class action waivers in contexts unrelated to rent control enforcement, in recognition of the New Jersey Supreme Court’s decision in Pace v. Hamilton Cove, 255 N.J. 283 (2024). 

     This bill would take effect immediately but would apply retroactively to all rental agreements in effect on or after the effective date of this bill, including violations arising from violations that occurred before the effective date.