Pre-Dispute Employment Arbitration Agreements Are Enforceable in New Jersey, According to A Recent Ruling

On March 18, 2019, New Jersey amended the New Jersey Law Against Discrimination (NJLAD) to include a provision that rendered unenforceable any “provision in an employment contract that waives any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment.” On August 30, 2019, business advocates filed a lawsuit in the District of New Jersey, N.J. Civ. Justice Inst. v. Grewal, arguing that the Federal Arbitration Act (FAA) preempts this amendment by effectively prohibiting the enforcement of pre-dispute arbitration agreements between employers and their employees for claims under the NJLAD.

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