NJ Supreme Court Voids Non-Disparagement Provision in Employment Bias Case

In a significant decision for New Jersey workers, the New Jersey Supreme Court ruled in that non-disparagement clauses cannot be used to silence victims of discrimination, harassment, or retaliation in employment or settlement agreements. 

Non-disparagement clauses, often included in employment contracts and settlement agreements, are designed to prevent individuals from making negative statements about their employer. While they may seem innocuous, they are sometimes used to silence employees who have legitimate grievances. The court held that such clauses are impermissible when they restrict a person’s right to speak out about discrimination, harassment or retaliation. 

The case, Christine Savage v. Township of Neptune, was brought by a police officer who claimed to have faced years of discrimination and retaliation. A settlement agreement included a non-disparagement clause that the Township of Neptune used to try to suppress Christine Savage’s subsequent public statements about the allegations she had made.

The court found that the non-disparagement clause violated Savage’s rights under the New Jersey Law Against Discrimination (NJLAD). The statute prohibits discrimination in employment and provides broad protections for employees who report or oppose discriminatory practices. The court held that the non-disparagement clause interfered with Savage’s ability to assert her rights under the NJLAD and to seek redress for the discrimination she had experienced.

This landmark ruling has profound implications for employment law in the state and signifies a major victory for workers’ rights. In addition to making it harder for employers to use non-disparagement clauses to suppress employee complaints, it sends a powerful message that employers cannot silence victims of discrimination, harassment or retaliation through contractual agreements.

The ruling also recognizes that open communication about discrimination, harassment and retaliation is vital to maintaining a fair and just work environment. By invalidating non-disparagement clauses that silence victims, the court has taken an important step towards achieving this goal.

Deutsch Atkins & Kleinfeldt, P.C. in Hackensack represents New Jersey workers in a full range of employment law matters, including discrimination claims. Please call 551-245-8894 or contact us online to schedule a meeting with one of our attorneys.