TRENTON, N.J. — Attorney General Matthew J. Platkin and the New Jersey Division on Civil Rights announced Wednesday that the agency has adopted new rules codifying the prohibition against disparate impact discrimination under the state’s Law Against Discrimination, formalizing legal standards that have long been recognized in New Jersey case law.
The rules address disparate impact discrimination in employment, housing, places of public accommodation, financial lending and contracting. Disparate impact discrimination occurs when a neutral policy or practice results in a disproportionately negative effect on people based on protected characteristics, even without intent to discriminate.
Officials said the regulations clarify the legal standards and burdens of proof applicable to disparate impact claims under the Law Against Discrimination, which is the nation’s oldest state civil rights statute.
“The landmark rules we are adopting today further solidify our state’s nation-leading civil rights protections,” Platkin said. “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.”
“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,” he added.
Yolanda N. Melville, director of the Division on Civil Rights, said the rules are intended to provide clarity for both individuals and regulated entities.
“The LAD safeguards against not only intentional acts of discrimination but also practices and policies that disproportionately affect members of protected groups,” Melville said. “The comprehensive rules announced today provides increased clarity on disparate impact liability and helps improve the way we enforce civil rights in New Jersey.”
The rules outline how disparate impact liability applies unless a regulated entity can demonstrate that a challenged policy is necessary to achieve a substantial, legitimate and nondiscriminatory interest and that no less discriminatory alternative exists. The regulations include examples to illustrate how alternative practices could reduce discriminatory effects while achieving the same goals.
The rules apply across a wide range of settings, including hiring practices involving criminal history, workplace language and appearance requirements, housing policies related to credit or income standards, policies affecting religious expression in public accommodations, and certain law enforcement and correctional practices.
The regulations also address the use of artificial intelligence and automated decision-making tools in employment, explaining how such technologies may result in disparate impacts on protected groups under state law. The guidance is part of the Division on Civil Rights’ broader Civil Rights and Technology Initiative.
The adoption was published in the New Jersey Register on Dec. 15, 2025. Officials said the rules do not create new liability under the Law Against Discrimination but instead clarify how existing law is analyzed and enforced.
