New Jersey Senate Bill S1400

New Jersey 2022-2023 Regular Session

• Introduced: 2/10/22
• Refer: 2/10/22

Caption

Prohibits severance pay agreements from barring certain employee claims against employer.

Impact

The implications of S1400 are significant for employees in New Jersey, particularly those who may be subjected to gender discrimination or harassment in the workplace. By making it illegal for employers to use severance pay agreements as a means to limit claims, this bill aims to create a safer and more equitable work environment. It encourages employees to speak out against discrimination and harassment without the fear of losing their severance benefits. The bill is intended to empower employees and provide them with legal recourse, thereby promoting workplace accountability.

Summary

Bill S1400, introduced in the New Jersey Legislature, aims to prevent severance pay agreements from restricting employees' rights to claim against their employers with respect to gender discrimination or harassment. This legislation specifically prohibits any employer from requiring or requesting an employee to enter into agreements that release or bar future claims of gender discrimination or harassment in exchange for severance pay. Any such provisions in severance agreements that violate this law would be rendered void and unenforceable, thereby ensuring that employees retain their right to pursue legal claims against employers.

Contention

While the bill has considerable support from advocates for employee rights, there may be contention from employers who view such regulations as restrictive. Employers may argue that severance agreements are a negotiation tool that can help them manage potential claims and liabilities. There might be discussions surrounding how this bill balances the rights of employees with the needs of employers to settle disputes amicably. Critics may argue that provisions like these could complicate severance negotiations and increase potential litigation for companies.