WeVote
Log In

Bill

Bill

S 1688

Prohibits certain non-disclosure and non-disparagement provisions in employment contracts.

2024-2025 Regular Session Introduced by Declan O'Scanlon and 1 co-sponsor

The bill makes confidentiality, non-disparagement, and secrecy clauses in discrimination, retaliation, or harassment settlements unenforceable, increasing transparency and limiting

Reported out of Senate Committee with Amendments, 2nd Reading
#labor
0
WeVote Research Nonpartisan
Bill Summary · S 1688

Summary — New Jersey Senate Bill S1688 (2025)

Purpose

S1688 amends New Jersey’s 2019 law (P.L.2019, c.39) to make explicit that employment contract and settlement provisions that seek to bar disclosure or disparagement related to claims of discrimination, retaliation, or harassment are against public policy and unenforceable. The bill codifies the New Jersey Supreme Court decision in Savage v. Twp. of Neptune, 257 N.J. 204 (2024).

Key provisions

  • Expands existing prohibition (C.10:5-12.7) to state that any employment-contract provision waiving substantive or procedural rights or remedies relating to discrimination, retaliation, or harassment — including non-disclosure and non-disparagement clauses or similar agreements — is against public policy and unenforceable.
  • Amends the confidentiality/settlement section (C.10:5-12.8) to bar any contract or settlement provision that has the purpose or effect of concealing details about such claims. If an employee publicly reveals sufficient details that make the employer reasonably identifiable, the confidentiality/non-disparagement provision is unenforceable against the employer as well as the employee.
  • Requires that every settlement resolving a discrimination/retaliation/harassment claim include a bold, prominent notice advising that confidentiality provisions may be unenforceable against the employer if the employee publicly reveals sufficient identifying details.
  • Clarifies that the statute does not prohibit agreements protecting legitimate business interests:
    • Non‑competition covenants (restrictions on competing during/after employment).
    • Non‑disclosure of proprietary, non‑public information (trade secrets, business plans, customer information).
  • Alters the prior collective‑bargaining carve‑out:
    • Removes the blanket exemption that had excluded collective bargaining agreements from the statutory prohibition.
    • Committee amendments permit collectively bargained agreements to require mediation or arbitration of discrimination/retaliation/harassment claims — but only if those procedures comply with section 2 of P.L.2019, c.39 (i.e., they may not be structured to conceal claim details).

Who is affected

  • Employees and former employees in New Jersey involved in discrimination, retaliation, or harassment claims.
  • Employers and their legal/HR departments (settlement practice, contract language).
  • Labor unions and collective bargaining negotiations (limits on confidentiality clauses; mediation/arbitration provisions must comply with anti‑concealment rules).
  • Attorneys negotiating settlement agreements.

Effective date and scope

  • The bill takes effect immediately upon enactment and applies to contracts and settlement agreements entered into, renewed, modified, or amended on or after the effective date.

Procedural status (selected)

  • Reported favorably with committee amendments out of the Senate Labor Committee, 2nd Reading (committee report dated March 3, 2025).
  • Introduced/first read in 2025 (filed May 8, 2025 in some records); further legislative scheduling and hearings were noted later in 2025.

Practical impact

  • Strengthens protections for victims of workplace discrimination, retaliation, and harassment by restricting confidentiality and non‑disparagement mechanisms that could suppress allegations.
  • Requires employers and unions to revise standard settlement and employment contract language to avoid prohibited concealment practices and to include explicit notices in settlements.
  • Preserves traditional protections for trade secrets and non‑compete rules while narrowing the use of confidentiality to shield unlawful employment conduct.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.