In March 2019, in response to the #MeToo movement, New Jersey enacted N.J.S.A. 10:5-12.8, which amended the New Jersey Law Against Discrimination (NJLAD) to prohibit, in employment contracts or settlement agreements, any non-disclosure or confidentiality provisions that have “the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment.” In Savage v. Township of Neptune, No. A-1415-20 (App. Div. May 31, 2022), the Appellate Division confronted the question of whether N.J.S.A. 10:5-12.8 also applies to non-disparagement provisions, and concluded it does not.
In Savage, plaintiff Christine Savage, a former sergeant with the Neptune Township Police Department, sued the department and its leadership under the NJLAD, alleging sex-based discrimination, harassment, and retaliation. In July 2020, the parties entered into a settlement agreement that did not have a non-disclosure provision, but that included, in relevant part, the following mutual non-disparagement clause:
The parties agree not to make any statements written or verbal, or cause or encourage others to make any statements, written or verbal regarding the past behavior of the parties, which statements would tend to disparage or impugn the reputation of any party. The parties agree that this non[-]disparagement provision extends to statements, written or verbal, including but not limited to, the news media, radio, television, internet postings of any kind, blogs,...
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