New Rules Are Nation’s Most Comprehensive Disparate Impact Liability Regulations
The rules make clear the legal standard for disparate impact liability under the
State Law Against Discrimination [LAD], Disparate impact discrimination occurs when a seemingly neutral practice or policy of a covered entity unlawfully results in a disproportionately negative effect based on a protected characteristic even when there is no intent to discriminate.
Office of the Attorney General
– Matthew J. Platkin, Attorney General
Division on Civil Rights
– Yolanda N. Melville, Director
TRENTON – Attorney General Matthew J. Platkin and the Division on Civil Rights (DCR) announced today that DCR has adopted landmark new rules that codify the prohibition against disparate impact discrimination under the New Jersey Law Against Discrimination (LAD), the oldest and strongest state civil rights law in the country.
The rules announced today, which address disparate impact discrimination in employment, housing, places of public accommodation, financial lending, and contracting, are the most comprehensive state-level disparate impact regulations in the country. The rules cement critical state-law civil rights protections just as the Trump Administration has moved to reverse key protections against disparate impact discrimination at the federal level.
The rules make clear the legal standard for disparate impact liability under the LAD, as well as the burdens of proof in disparate impact discrimination claims. Disparate impact discrimination occurs when a seemingly neutral practice or policy of a covered entity unlawfully results in a disproportionately negative effect based on a protected characteristic, even where there is no intent to discriminate.
“The landmark rules we are adopting today further solidify our state’s nation-leading civil rights protections. As the Trump Administration continues its unlawful attempts to dismantle disparate impact protections at the federal level, it’s more important than ever that states take action to protect the civil rights of their residents – and that’s exactly what we’re doing,” said Attorney General Platkin. “These landmark rules, which are the most comprehensive disparate impact rules in the country, make clear that the Law Against Discrimination prohibits discrimination in all of its forms, and they confirm New Jersey’s commitment to upholding the LAD’s protections and continuing our state’s longstanding leadership on civil rights.”
“The LAD safeguards against not only intentional acts of discrimination but also practices and policies that disproportionately affect members of protected groups,” said Yolanda N. Melville, Director of the Division on Civil Rights. “The comprehensive rules announced today provides increased clarity on disparate impact liability and helps improve the way we enforce civil rights in New Jersey.”
Disparate impact discrimination liability is a powerful tool to remedy practices and policies that harm members of historically marginalized communities. These rules will provide New Jerseyans with a better understanding of the LAD’s protections and provide regulated entities – such as housing providers, employers, and places of public accommodation – with a better understanding of their legal obligations.
The rules adopted today confirm that New Jersey’s civil rights laws continue to prohibit disparate impact discrimination – notwithstanding the Trump Administration’s unprecedented attempts to dismantle disparate impact standards at the federal level. Not only are those federal attempts to roll back disparate impact liability standards inconsistent with existing federal law, but they cannot and do not change the standards applicable under state law—standards that today’s landmark rules now codify in New Jersey.
The newly adopted rules codify existing case law and provide examples to clarify the types of practices and policies that could violate the LAD by having a disparate impact on members of a protected class. The LAD prohibits disparate impact discrimination on the basis of race, national origin, religion, gender, gender identity, gender expression, disability, sexual orientation, and other protected characteristics in employment, housing, places of public accommodation, financial lending, and contracting.
“The landmark rules we are adopting today further solidify our state’s nation-leading civil rights protections. As the Trump Administration continues its unlawful attempts to dismantle disparate impact protections at the federal level, it’s more important than ever that states take action to protect the civil rights of their residents – and that’s exactly what we’re doing,” said Attorney General Platkin. “These landmark rules, which are the most comprehensive disparate impact rules in the country, make clear that the Law Against Discrimination prohibits discrimination in all of its forms, and they confirm New Jersey’s commitment to upholding the LAD’s protections and continuing our state’s longstanding leadership on civil rights.”
“The LAD safeguards against not only intentional acts of discrimination but also practices and policies that disproportionately affect members of protected groups,” said Yolanda N. Melville, Director of the Division on Civil Rights. “The comprehensive rules announced today provides increased clarity on disparate impact liability and helps improve the way we enforce civil rights in New Jersey.”
Disparate impact discrimination liability is a powerful tool to remedy practices and policies that harm members of historically marginalized communities. These rules will provide New Jerseyans with a better understanding of the LAD’s protections and provide regulated entities – such as housing providers, employers, and places of public accommodation – with a better understanding of their legal obligations.
The rules adopted today confirm that New Jersey’s civil rights laws continue to prohibit disparate impact discrimination – notwithstanding the Trump Administration’s unprecedented attempts to dismantle disparate impact standards at the federal level. Not only are those federal attempts to roll back disparate impact liability standards inconsistent with existing federal law, but they cannot and do not change the standards applicable under state law—standards that today’s landmark rules now codify in New Jersey.
The newly adopted rules codify existing case law and provide examples to clarify the types of practices and policies that could violate the LAD by having a disparate impact on members of a protected class. The LAD prohibits disparate impact discrimination on the basis of race, national origin, religion, gender, gender identity, gender expression, disability, sexual orientation, and other protected characteristics in employment, housing, places of public accommodation, financial lending, and contracting.
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