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Important New Exemption to the New Jersey Charitable Immunity Act (NJCIA)
Many nonprofits depend on the NJCIA to provide immunity from a wide variety of potential legal problems. However, an important new protection for victims has been signed into law. This new provision should cause nonprofits to take a look at their Human Resources policies – or lack thereof – and take preventive action.
On January 5, 2006 Acting Governor Codey signed into law revisions to the New Jersey Charitable Immunity Act. Effective on that date, the revised Act no longer applies to lawsuits alleging the negligent hiring, supervision or retention of an “employee, agent or servant” by a charity, resulting in a sexual offense against a person under the age of 18 years. A retroactivity provision allows plaintiffs with suits currently in the judicial system, including those on appeal, to proceed without the charitable immunity defense being available to non-profit defendants.
Marion Conway Consulting