Prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws.

2026-2027 Regular Session Introduced by Yvonne Lopez and 2 co-sponsors

The bill bars any residential lease language waiving a tenant’s right to join a class action for rent control violations, making such waivers void and enforceable penalties.

Reported and Referred to Assembly Judiciary Committee

Overview

A 3997 (Session 222, New Jersey) prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws. The bill supplements Title 56 of the Revised Statutes and imposes remedies and penalties for violations. It takes effect immediately and applies retroactively to rental agreements in effect on or after the effective date, including prior or ongoing violations.

Purpose and intent

Preserve tenants’ ability to pursue class actions related to rent control violations.

Support enforcement of rent control ordinances by ensuring access to collective legal remedies, which is especially important where individual overcharge claims may be financially impractical.

Affirm that class action waivers in residential leases or addenda related to rent control claims are void and unenforceable.

Key provisions and changes

Prohibition of class action waivers: Any provision in a residential rental agreement that waives, limits, or restricts a tenant’s right to participate as a class representative or class member in a class action arising from rent control violations is void and unenforceable, regardless of when executed (initial lease or addendum).

Prima facie CFA violation: Including such a waiver in a rental agreement constitutes prima facie evidence of a violation of the New Jersey Consumer Fraud Act (CFA).

Tenant remedies for waiver exposure:

Declaratory judgment finding the waiver void and unenforceable.
Injunction prohibiting enforcement of the waiver.
Actual damages.
Reasonable attorney’s fees (in addition to other CFA remedies and any other state or federal remedies).

Landlord penalties: A landlord who violates the waiver prohibition is liable for a penalty of $1,000 per affected dwelling unit.

Scope of remedies: Remedies are cumulative and do not preclude other available state or federal remedies, including those under the Reprisal Law (P.L.1970, c.210, C.2A:42-10.10 et seq.).

Retroactivity and retroactive applicability: Applies to all rental agreements in effect on or after the effective date, and to rent control violation claims that occurred before the effective date.

Who/what is affected

Affected parties: Residential tenants and landlords in New Jersey.

Affected agreements: All residential rental agreements and any addenda that attempt to waive class action participation for rent control violation claims.

Enforcement agencies: The bill interacts with the New Jersey Consumer Fraud Act and potential reprisal protections under existing law.

Procedural and timeline aspects

Effective date: Immediate upon enactment.

Retroactive applicability: Applies to rental agreements in effect on or after the effective date, including claims arising from violations that occurred before the effective date.

Legislative status: Introduced January 13, 2026; referred to Assembly Housing Committee, then reported and referred to Assembly Judiciary Committee (as of May 14, 2026).

Practical implications

Tenants can pursue class actions more readily for rent control violations without fearing waiver provisions.

Landlords must ensure rental agreements do not include any language that attempts to waive class action rights in rent control contexts.

Potentially higher compliance costs for landlords due to penalties and the availability of attorney’s fees for tenants.

The bill does not invalidate class action waivers in other contexts unrelated to rent control enforcement, per reference to Pace v. Hamilton Cove (2024).