On March 18, 2019, New Jersey Governor Phil Murphy signed new legislation (S121) that significantly impacts the scope of certain employment agreements and settlement agreements between employers and employees/former employees. The controversial legislation addresses the following:
The legislation voids any provision in an employment contract that waives “any substantive or procedural right or remedy relating to a claim of discrimination, retaliation or harassment.” In addition, the legislation prohibits an employer from prospectively waiving any right or remedy under the New Jersey Law Against Discrimination (NJLAD).
This language could impact agreements such as jury trial waivers and arbitration agreements. To the extent that the law touches arbitration agreements, however, it will likely face challenges on the grounds that the law conflicts with, and is preempted by, the Federal Arbitration Act.