Bill Text: NJ S4262 | 2018-2019 | Regular Session | Introduced
Bill Title: Makes retroactive certain provisions of P.L.2019, c.39, prohibiting terms in employment contracts or settlement agreements that waive rights or remedies, or prevent disclosures, relating to claims of discrimination, retaliation, or harassment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-11-18 - Introduced in the Senate, Referred to Senate Labor Committee [S4262 Detail]
Download: New_Jersey-2018-S4262-Introduced.html
Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Makes retroactive certain provisions of P.L.2019, c.39, prohibiting terms in employment contracts or settlement agreements that waive rights or remedies, or prevent disclosures, relating to claims of discrimination, retaliation, or harassment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the effect and enforceability of certain employment contracts or settlement agreements by making certain provisions of P.L.2019, c.39 retroactively applicable to these contracts and settlement agreements.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2019, c.39 (C.10:5-12.8) is amended to read as follows:
2. a. A provision in any employment contract or settlement agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment (hereinafter referred to as a "non-disclosure provision") shall be deemed against public policy and unenforceable against a current or former employee (hereinafter referred to as an "employee") who is a party to the contract or settlement. If the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable, then the non-disclosure provision shall also be unenforceable against the employer.
b. [Every] On and after March 18, 2019, being the original effective date of P.L.2019, c.39 (C.10:5-12.7 et seq.) before its retroactive application to an earlier date by P.L. , c. (pending before the Legislature as this bill), every settlement agreement resolving a discrimination, retaliation, or harassment claim by an employee against an employer shall include a bold, prominently placed notice that although the parties may have agreed to keep the settlement and underlying facts confidential, such a provision in an agreement is unenforceable against the employer if the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable.
c. Notwithstanding any other provision of law to the contrary, this section shall not be construed to prohibit an employer from requiring an employee to sign an agreement:
(1) in which the employee agrees not to enter into competition with the employer during or after employment; or
(2) in which the employee agrees not to disclose proprietary information, which includes only non-public trade secrets, business plan and customer information.
(cf: P.L.2019, c.39, s.2)
2. Section 5 of P.L.2019, c.39 (C.10:5-12.11) is amended to read as follows:
5. a. Any person claiming to be aggrieved by a violation of P.L.2019, c.39 (C.10:5-12.7 et seq.) may initiate suit in Superior Court. [An]
(1) Any action pursuant to this section that accrued on or after March 18, 2019, being the original effective date of P.L.2019, c.39 (C.10:5-12.7 et seq.), shall be commenced within two years next after the cause of any such action shall have accrued.
(2) Notwithstanding the two-year statute of limitations set forth in paragraph (1) of this subsection, or any other statute of limitations provisions in any other statute, any action pursuant to this section for violations that occurred prior to March 18, 2019, based on the retroactive application of P.L.2019, c.39 (C.10:5-12.7 et seq.) pursuant to P.L. , c. (pending before the Legislature as this bill), may be commenced until January 1, 2022.
b. All remedies available in common law tort actions shall be available to prevailing plaintiffs. These remedies are in addition to any provided by P.L.2019, c.39 (C.10:5-12.7 et seq.) or any other statute. A prevailing plaintiff shall be awarded reasonable attorney fees and costs.
(cf: P.L.2019, c.39, s.5)
3. Section 6 of P.L.2019, c.39 is amended to read as follows:
6. This act shall take effect immediately, shall be retroactive to January 1, 2016, and shall apply to all contracts and agreements entered into, renewed, modified, or amended on or after [the effective date] January 1, 2016.
4. P.L. , c. (pending before the Legislature as this bill) shall take effect immediately and shall be retroactive to January 1, 2016.
STATEMENT
This bill would make retroactive, to January 1, 2016, most of the provisions of P.L.2019, c.39 (C.10:5-12.7 et seq.), which prohibit terms in employment contracts or settlement agreements that waive any substantive or procedural right or remedy, or which prevent disclosures, when related to claims of discrimination, retaliation, or harassment. Any such terms are deemed, as of January 1, 2016, to be against public policy and are unenforceable.
The only provision not applied retroactively is the requirement that every settlement agreement resolving a discrimination, retaliation, or harassment claim by an employee against an employer include a "bold, prominently placed notice" that any agreement "to keep [the] settlement and underlying facts confidential is unenforceable against the employer if the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable." Subsection b. of section 2 of P.L.2019, c.39 (C.10:5-12.8). Thus, this written notice requirement included in P.L.2019, c.39, first effective on March 18, 2019, does not have to be physically incorporated into settlement agreements entered into, renewed, modified, or amended prior to that March 2019 date.
Finally, the bill adds a new window, that would expire on January 1, 2022, during which time a person claiming to be aggrieved by a violation of P.L.2019, c.39 that occurred prior to the original effective date of March 19, 2019 could bring a lawsuit, notwithstanding that such claims ordinarily would be subject to a two-year statute of limitations. See P.L.2019, c.39, s.5 (C.10:5-12.11). This window will ensure that persons with claims dating back to actions that occurred as early as the retroactive effective date of January 1, 2016 will not be prevented from bringing a lawsuit.
