A New Jersey law mandates that health clubs waive all recurring membership fees for the entire duration of any state-declared infectious-disease emergency—with no time limit or cap.
Most New Jersey gym and fitness studio owners don't realize they're operating under a membership-fee mandate that could eliminate revenue for months or longer during a declared health emergency. It's buried in bill A5357, and it takes effect immediately upon enactment.
Under Section 1 of A5357, which amends Section 4 of P.L.1987, c.238 (C.56:8-42), subsection k(2), health clubs must include a specific provision in all membership contracts: when the Governor declares a state of emergency or public health emergency due to an infectious-disease outbreak, members have the right to freeze their membership. During that freeze—and for the entire duration of the declared emergency—the health club is legally prohibited from collecting any recurring dues or fees.
This is not optional. It is not negotiable. It applies to all recurring charges, whether monthly memberships, annual fees, or other periodic billing.
The practical impact is straightforward: once a gubernatorial emergency declaration related to infectious disease is issued, your recurring revenue stops. Members can freeze their accounts, and you cannot bill them—not for the month of the declaration, not for the following month, and not until the emergency declaration is formally lifted. There is no sunset clause, no cap on how long the waiver obligation lasts, and no exception for partial months or administrative costs.
This differs significantly from typical membership suspension policies. Members retain their membership rights without paying; you retain the obligation to honor those rights when the emergency ends. The financial exposure depends entirely on the duration of the declared emergency.
This applies to all health clubs and fitness studios in New Jersey that offer membership contracts. It covers gyms of any size, boutique fitness studios, CrossFit boxes, yoga studios with membership models, and any facility that charges recurring fees for access.
Review your current membership contracts to ensure they include the required language regarding fee waivers during infectious-disease emergencies. If they don't, they should be updated to comply with the law. Consult with legal counsel about how this provision interacts with your existing contract terms, cancellation policies, and financial planning.
Consider how a prolonged emergency declaration would affect your cash flow, staffing, and operating costs. Unlike temporary closures, this mandate requires you to maintain membership obligations—and the associated liability—without collecting fees. Some operators may want to explore business interruption insurance or other financial safeguards, though coverage varies widely.
The law is effective immediately upon enactment. Section 2 contains the operative date language. There is no grace period for compliance.
For a detailed, business-specific summary of A5357 and how it affects membership contract language, contact your state trade association or legal counsel. The New Jersey Fitness & Wellness Association and the New Jersey Chamber of Commerce can provide additional guidance.