This new New Jersey law goes further. Under the new law, which takes effect immediately, any confidentiality clause contained in a severance agreement or a contract of transaction (or employment contract) “having the purpose or effect of concealing details related to the right to discrimination, retaliation or harassment is now “null” at the employee`s choice. In other words, although the parties accept confidentiality in an agreement, the employee may violate that clause and that clause becomes unenforceable, at least likely, but on the basis of the misreprescing of the status, which is not necessarily limited to discussions about allegations of harassment, discrimination or retaliation. The only restriction is that the employer is also free to ignore the confidentiality provision when the worker violates the confidentiality clause and contains sufficient information to know who the employer was. In the end, workers may decide not to comply with this clause, in any event or in the case of severance pay involving harassment, discrimination or retaliation. The only exceptions to this law are that it applies only to agreements reached on Or after March 18, 2019, so it does not apply to existing agreements. The law also specifies that it does not prohibit non-competition obligations and agreements prohibiting the disclosure of trade secrets or similar protected information. The New Jersey Confidentiality Agreement is a document that employers often have to sign with their new employees to protect the company`s business secrets. A trade secret can be defined as intellectual property whose economic value can be inferred if the information is not made available to the general public. The following model uses the term “confidential information,” which can mean countless things (trade secret is one of them), not limited to the examples listed in the document. The agreement between an employer and a worker would be defined as one-sided and only one party, in this case the worker, would be prohibited from disclosing the information. A reciprocal agreement would be used in the event that the secrecy of the information is estimated by more than one party and two or more parties are held incommunicado. On March 18, 2019, Governor Murphy signed Senate Bill 121 in a regular model for passing new major labor laws in New Jersey.
This new law has a dramatic impact on severance pay and compensation agreements for work allowances and legal actions, as it allows employees to violate without penalty any confidentiality clause contained in these agreements. In addition, the new law renders a waiver of an employment right or recourse in relation to a right to harassment, discrimination or retaliation in an employment contract unenforceable and places it on a possible course of conflict with federal law on mandatory arbitration agreements. Yes, the Supreme Court has largely applied the federal arbitration law and says it shows that Congress intends to enforce labour arbitration procedures in general. (There are exceptions for some workers in the transportation industry.) A court could find that New Jersey`s law – to the extent that it could be interpreted to prohibit arbitration agreements – is itself unstable in light of the FAA.