The New Jersey Pay and Benefit Transparency Act (the “Act”) became effective on June 1, 2025 and covered New Jersey employers should be ready to comply with this new law immediately. The Act requires that applicants for employment be advised of the pay, benefits, and compensation programs for any new job or transfer opportunity before applying for the job and such information must be included in all postings for these opportunities.
As defined in the Act, “Employer” means “any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within this State, including the State, any county or municipality, or any instrumentality thereof.” Employers should note that this definition means that the Act covers employers even if they are not physically located in the State.
The postings required by the law include information for both promotional opportunities and new employment positions, whether posted internally or externally, and regardless of where the opportunity is advertised (i.e., the Act applies to online and physical job postings). The law requires disclosure of the hourly wage or salary or a range of the compensation rate, as well as a general description of the benefits and other compensation programs for which the employee would be eligible.
Violations of the Act will be met with civil penalties, which are progressive.
The New Jersey Department of Labor has provided guidance regarding the Act, which is available here.
New Jersey joins other states including New York, which require such pay transparency postings. Employers are well advised to review their posting practices to ensure compliance with this new law.
