March 4, 2019: Written by Christopher M. Leddy, Esq.
New Jersey becomes the latest state to place restrictions on Confidentiality/Non-Disclsoure provisions in employment matters
As the tidal wave that is the #MeToo movement continues to press forward, on March 18, 2019, New Jersey joined the sweeping trend of disallowing confidentiality/non-disclosure provisions in employment contracts and settlement agreements against current or former employees for claims involving discrimination, retaliation or harassment.
Specifically, the law states “[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 shall be deemed against public policy and unenforceable against a current or former employee who is a party to the contract or settlement.” Further, as a logical offshoot of the foregoing, retaliatory action cannot be taken against an employee who refuses to enter into an agreement in contravention of this law.