Nj Confidentiality Agreements

The second aspect of the new legislation, signed by Governor Murphy, concerns employment contracts, which include all “no” rights under discrimination laws. The new law provides that no “material or procedural” rights or remedies under New Jersey labour law can be waived in an employment contract. The only exception is union collective agreements that are excluded from this new law. The exact meaning of this language is not clear. It is clear that this is a well-recognized right for employers to waive the right to sue or to seek damages or other remedies under the law. But employers – for example in arbitration agreements – have required employees to drop a jury or take legal action, which seems to prohibit the new law. If so, this could be contrary to the federal Arbitration Act, the Federal Law on the Protection of Arbitration Agreements in the Workplace. For the time being, employers should consult with Demcounsel before developing or implementing binding arbitration agreements, as this law and its full effect will ultimately be tried by the courts. In order to ensure the highest level of protection of trade secrets and protected information, employers should put in place a comprehensive programme of procedures and measures to preserve confidentiality and information. Trade secrets and confidential information relating to an employer`s ownership may be protected from disclosure by workers through confidentiality or confidentiality agreements. Such agreements are often used by employers to preserve the confidentiality of technical information, data and professional know-how that have given a competitive advantage in the marketplace.

But doesn`t the U.S. Supreme Court have a very positive view of labour arbitration? How is that compatible with this law? How does this law apply to work-reconciliation agreements? As we have already discussed, the law applies to the settlement of all claims that involve discrimination, retaliation and harassment. In addition, the law says that it is illegal for employers to retaliate against employees (or former employees) who refuse to sign agreements with conditions that are not applicable under the law. This amendment has the practical effect of prohibiting the typical confidentiality rules that accompany the imposition of LAD duties. The amendment provides that confidentiality clauses in employment contracts and transaction agreements are considered contrary to public policy and are unenforceable against a current or former employee when they have “the purpose or effect of concealing details related to the right to discrimination, retaliation or harassment.” The law does not say anything directly about arbitration agreements.

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