[First Reprint]

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 reported by the Assembly Appropriations Committee on October 22, 2026, with amendments.

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.

¹c. In addition to the penalties set forth in this subsection b. of this section, a landlord who violates the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) may, at the discretion of the tenant, additionally be subject to a civil penalty of $2,500 to be recovered by the tenant from the landlord for each day that the landlord continues to violate the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) after receiving notification of a violation, in addition to a reasonable attorney’s fee and expenses, court costs, expenses for expert witnesses, and other expenses incurred in proving a violation of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).¹

¹4.  Nothing in P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall be construed to invalidate or otherwise affect any arbitration agreement or class action waiver to the extent enforcement is required by the Federal Arbitration Act, 9 U.S.C. s.1 et seq.¹

¹[4.] 5.¹    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.