Gov. Phil Murphy signed into law the Motor Vehicle Open Recall Notice and Fair Compensation Act, which requires the Motor Vehicle Commission to notify the owner of the National Highway Traffic Safety Administration (NHTSA) database of open recalls. The New Jersey State Bar Association voiced concerns in the initial bill that would have shielded franchisees and dealers from consumer claims and shifted the burden on purchasers, advocating instead for a complete prohibition on selling vehicles with open recalls. The current law substituted the problematic bill in favor of one that requires notice and reimbursement for certain expenses to address the recall, shifting the NJSBA’s position to neutral.
The law, designed to protect consumers, requires notice from the MVC to include a link to the internet website through which a motor vehicle owner can access the NHTSA recall database and a statement indicating that each open recall may be repaired by a dealer approved by the manufacturer of the motor vehicle at no cost to the owner, except as provided under federal law. The law is also designed to ensure that dealerships and technicians are fairly compensated.
The New Jersey AFL-CIO voiced concerns on an early version of the bill because manufacturers implemented a quota system that resulted in unpaid overtime to resolve recalls. Unions representing auto mechanics lauded the new law that provides fair compensation to technicians.
“I’m proud to see this legislation signed into law because it delivers real protections for drivers in New Jersey, making sure they receive clear notice when a recall puts their safety at risk,” said Assembly Speaker Craig Coughlin. “At the same time, our neighborhood dealerships and their highly skilled technicians deserve fair compensation for the work they perform.”
The new law becomes effective in April 2026. A full copy of the law may be found here.