Employers may not have non-disclosure provisions in their employment-related settlement agreements or employment contracts, but they can still include non-disparagement provisions to prevent negative comments by former employees.

Non-Disparagement Provisions: Allowed (for Now)

On May 31, 2022, the New Jersey Superior Court, Appellate Division, published its decision in Savage v. Twp. of Neptune, 472 N.J. Super. 291 (App. Div. 2022), holding that non-disparagement provisions are enforceable in settlement agreements resolving claims under New Jersey’s Law Against Discrimination, N.J.S.A. 10:5-1 to -50 (“LAD”), notwithstanding the Legislature’s earlier rejection of non-disclosure provisions. A non-disparagement clause is a contractual provision prohibiting the parties from publicly communicating anything negative about each other.

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