Public policy considerations preclude ability to contract out of punitive damage exposure under the New Jersey Law Against Discrimination.

The plaintiff, a human resources specialist, alleged that she was sexually harassed by the Director of Human Resources and her immediate supervisor. The employer sought to dismiss the complaint and to compel arbitration of the claim. The plaintiff opposed the motion by alleging that she did not fully understand the terms of the arbitration provision and that, regardless, the arbitration provision was void since it included a waiver of any right to seek punitive damages. The Appellate Division affirmed the trial court’s order compelling arbitration, but the court struck the punitive damage waiver as against public policy. This decision follows the New Jersey Supreme Court’s decision which voided an arbitration provision that shortened the statute of limitations to bring the claim under the Law Against Discrimination.

_{Case Law Alerts, 4^th Quarter, October 2018}

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