Takeaways

• The new rules codify existing obligations under the state antidiscrimination law and clarify that policies or practices resulting in a disparate impact to protected classes are discriminatory and prohibited.
• Employers should proactively audit, validate, and document their practices, particularly with respect to the use of AI and other applicant screening tools, even if they are used through a third party.
• Robust governance, vendor oversight, and continuous monitoring are essential for workplaces governed by the NJLAD.

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Article

The New Jersey Division on Civil Rights (DCR) adopted new regulations re-enforcing the New Jersey Law Against Discrimination’s (NJLAD) prohibition on employment practices or policies that disproportionately harm a protected group, even absent discriminatory intent.

The New Jersey rules come following President Donald Trump’s executive order calling for an end to theories of disparate impact and ordering federal agencies to stop enforcement of antidiscrimination laws based on such theories. In response to the executive order, the Department of Justice issued a final rule eliminating liability for disparate impact discrimination under Title VII of the Civil Rights Act of 1964.

Who Is Covered? What Practices Are Affected?

The rules, adopted on Dec. 15, 2025, apply to all employers operating in New Jersey and are otherwise subject to the NJLAD, including multistate employers with New Jersey-based roles or applicants.

The...

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