The number of states enacting pay transparency laws increased by one on November 18, 2024, when New Jersey Governor Phil Murphy signed into law a pay transparency act (P.L.2024, c.91) that requires covered employers to disclose wage or salary information and a description of benefits in job postings. While New Jersey employers have long been prohibited from preventing employees from discussing their wages, employers are now required to affirmatively disclose compensation and benefit information for job openings. The law adds yet another layer to covered employers’ obligations with respect to compensation in the Garden State. The law also reaches beyond employers and applies to job placement, referral agencies and other employment agencies.
As of June 1, 2025, New Jersey will require all employers with ten or more employees to communicate to its employees any opportunities for promotion that the employer advertised internally or externally. Promotions offered to a singular current employee based on years of experience or performance are exempt from this requirement.
The law will require employers to include the anticipated salary range and a general description of benefits in each position for new jobs or transfer opportunities. The posted salary range is a minimum, as the law specifically provides that employers are not prohibited from increasing the identified compensation at the time they extend the offer for employment.
The law includes job placement, referral agencies and other employment agencies in its definition of employers that are covered by the posting requirements. However, temporary help service firms advertising for future temporary positions are not subject to the act’s posting requirements. Instead, temporary help service firms will be required to provide salary range and a general description of benefits to an applicant for temporary employment at the time of interview or hire for a specific job opening.
Violations of the pay transparency law will subject employers to a civil penalty of up to $300 for first-time offenses and $600 for subsequent offenses, with each promotional opportunity being considered as a singular offense. Specifically, multiple unlawful postings for one opportunity will not subject an employer to multiple fines. The Commissioner of Labor and Workforce Development will enforce the law via summary proceeding; there is no reference to a private right of action in the law.
New Jersey employers should review their job postings for compliance with the new disclosure requirements ahead of the law’s June 1, 2025 effective date.
