Analysis

NJ Arbitration Measure On 'Collision Course' With Fed. Law

By Bill Wichert (March 21, 2018, 9:36 PM EDT) -- Pending legislation in New Jersey aimed at banning nondisclosure agreements in cases of discrimination, retaliation or harassment also would preclude arbitration agreements in employment contracts, a move some attorneys and law professors said would run afoul of federal law and U.S. Supreme Court precedent that prohibit state efforts to forbid arbitration.

The prohibition on the waiver of any "procedural right" under the proposed bill could be interpreted as barring arbitration, but such a measure would be preempted by the Federal Arbitration Act based on U.S. Supreme Court rulings, attorneys and law professors said.

"It's definitely on a collision course as applied...

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