Confidential Settlement Agreements in the Workplace
On March 18, 2019, Governor Murphy signed S-121 (Weinberg) / A-1242 (McKeon/Bramnick) into law, which bars provisions in employment contracts that waive certain rights, and remedies and agreements that conceal details relating to discrimination claims. The CCSNJ, which opposed this bill, commends the bill’s sponsors for introducing this legislation that aims to eradicate sexual harassment and assault in the workplace at a crucial and long overdue time when the “#MeToo” and “#TimesUp” movements are dominating today’s culture. Unfortunately, the legislation fell short of its intended goal with vague language that is written so expansively that any form of discrimination, retaliation or harassment – not just sexual harassment – would fall under it, removing an employer’s right to a confidential settlement regardless of the claims’ veracity. Additionally, it does not take into consideration that the complainant may want confidentiality as they navigate the legal proceedings and come to terms on a final agreement.
Related Links : https://www.njleg.state.nj.us/2018/Bills/PL19/39_.HTM