Providing gross income tax exclusion for awards for unlawful gender-based compensation discrimination.

This bill (A981) excludes settlements and awards for gender-based pay discrimination from taxable income in New Jersey. It directly affects employees who win legal claims or settlements against employers for unequal pay or discriminatory employment terms based on gender. The law ensures these compensation awards - whether paid as a lump sum or over time - do not count as gross income for tax purposes. This prevents victims from facing higher tax bills on funds meant to correct past pay discrimination. The exclusion applies to claims under federal, state, or local law regarding compensation, wages, or employment conditions.