New Jersey tenants would gain protection against lease terms blocking rent-control group lawsuits, except when federal arbitration law requires those terms to be enforced.
Leases in effect when the law starts or later could not block tenants’ group lawsuits over rent-control violations, including earlier violations. Exceptions would apply when federal arbitration law requires enforcement, and violating landlords would face penalties.
Landlords would be barred from using lease terms to stop or limit tenants from joining or leading group lawsuits over rent-control violations. The ban would cover terms in initial residential leases and later add-ons, regardless of when those terms were signed. The ban would yield when federal arbitration law requires an arbitration agreement or a term blocking group lawsuits to be enforced. Violating landlords would face a $1,000 penalty per affected home. Tenants could also seek $2,500 for each day a violation continues after notice. The law would take effect immediately upon enactment and cover agreements in effect on or after that date, including claims about rent-control violations before that date.
No hearings or votes scheduled.