In a decision that may be useful to employers drafting severance and litigation settlement agreements in New Jersey, a panel of the New Jersey Appellate Division found that provisions requiring parties to not disparage one another may be included in settlement agreements in employment-related cases.
On May 31, in Savage v. Township of Neptune, the appellate court rejected the notion that non-disparagement clauses are against public policy and unenforceable under New Jersey law.
Christine Savage, who had been employed as a police officer by Neptune Township since 1998, brought an action against the township and its police department in 2013, alleging sexual discrimination, harassment, and unlawful retaliation in violation of New Jersey's Law Against Discrimination (LAD).
The parties settled that case in May 2014, pursuant to which the defendants agreed to promote Savage to sergeant and provide her with access to training.
In a second action, Savage filed a complaint in April 2016 and an amended complaint in September 2018 against the township and the police department, alleging continuing sex discrimination and harassment, retaliation, and aiding and abetting discrimination in violation of the LAD, and violations of the New Jersey Civil Rights Act and the state constitution.
On July 23, 2020, after engaging in three months of extensive negotiation and mediation, the parties executed a comprehensive settlement agreement and general release.
The settlement agreement included...
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