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Doubling Down on the FAA: NJ District Court Strikes Down the NJLAD's Prohibition Against Arbitration | Genova Burns LLC

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Earlier this year, in a matter of first impression, the Monmouth County Law Division in Janco v. Bay Ridge Automotive Management Corp. held that the amendment to the New Jersey Law Against Discrimination (NJLAD) which prohibits a waiver of any right or remedy available under the NJLAD was superseded by the Federal Arbitration Act (FAA). In its decision on March 25, 2021 in New Jersey Civil Justice Institute v. Grewal, the United States District Court followed suit and enjoined the State AG from enforcing Section 12.7 of the NJLAD that would invalidate arbitration agreements between employers and employees. This decision represents a significant victory for employers on the enforceability of arbitration agreements in harassment, discrimination and retaliation cases in New Jersey. ....

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FAA Trumps NJLAD: NJ Superior Court Upholds Employer's Arbitration Agreement in NJLAD Case | Genova Burns LLC

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In a matter of first impression, the Monmouth County Law Division in Janco v. Bay Ridge Automotive Management Corp., found that a former employee’s claims brought under the New Jersey Law Against Discrimination were subject to the arbitration agreement that she signed when she was first hired. The Court further held that the recent amendment to the Law Against Discrimination (NJLAD) which prohibits a waiver of any right or remedy available under the NJLAD was superseded by the Federal Arbitration Act.
Facts
Karina Janco signed an arbitration agreement as part of her onboarding documents when she was hired by Bay Ridge Automotive. This agreement stated that both “the employer and employee mutually consent to the resolution by final and binding arbitration of all disputes, claims or controversies of any kind between them,” which include “claims for discrimination, harassment, and/or retaliation. . . .� ....

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