TRENTON, NJ – Attorney General Matthew J. Platkin announced Tuesday that the Division on Civil Rights has formally adopted sweeping new rules defining and enforcing “disparate impact” discrimination under New Jersey’s Law Against Discrimination (LAD), a move officials called the most comprehensive state-level regulation of its kind in the country.
The new rules, adopted December 15 and published in the New Jersey Register, strengthen the state’s ability to address policies and practices that disproportionately harm protected groups—even when there is no intent to discriminate. The LAD, enacted in 1945, is one of the nation’s oldest and most far-reaching anti-discrimination laws, covering employment, housing, public accommodations, financial lending, and contracting.
“These landmark rules 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.”
Division on Civil Rights Director Yolanda N. Melville said the new regulations “provide increased clarity on disparate impact liability and help improve the way we enforce civil rights in New Jersey.” She emphasized that the LAD protects against both intentional discrimination and neutral policies that have unequal effects on protected classes.
Under the rules, practices that disproportionately affect individuals based on race, gender, disability, national origin, religion, sexual orientation, or other protected traits may violate the LAD unless the entity can prove the policy serves a substantial, legitimate purpose and that no less discriminatory alternative exists.
Examples cited by the Division include housing providers who automatically reject applicants based on low credit scores, employers who exclude job seekers based on criminal history or citizenship without legal basis, and public institutions enforcing appearance or language restrictions that disproportionately impact certain groups.
The regulations also address modern challenges, including the use of artificial intelligence in hiring. The rules clarify how automated decision-making tools—such as résumé-screening algorithms or facial analysis software—may result in disparate impact and therefore fall under LAD scrutiny.
The adoption of these rules follows years of case law interpreting the LAD and codifies how state agencies and courts evaluate disparate impact claims. Officials said the goal is not to expand liability but to provide clear standards for both enforcement and compliance.
With these measures, New Jersey becomes the first state in the nation to codify such detailed disparate impact standards, reaffirming its position at the forefront of civil rights enforcement amid shifting federal protections.