On June 1, 2025, a new law became effective that requires employers in New Jersey to publicize salary ranges and benefits information with any new job posting. The
New Jersey Pay and Benefit Transparency Act (the “NJPBTA”) requires an “employer”, defined as any person, company, corporation, firm, labor organization, or association that has at least 10 employees over 20 calendar weeks who:
(a) conducts business,
(b) employs individuals, or
(c) takes employment applications in New Jersey,
to disclose in each internal or external job posting or transfer opportunity:
- the exact hourly wage or salary to be paid or an hourly wage or salary range to be paid, and
- a general description of benefits and other compensation.
The posted range must have a starting and ending point. It is insufficient to state in the posting that pay will be “up to $25 per hour” or “$50,000 per year and above.” This requirement applies to internal and external job postings published online, on posters and flyers, or on other similar advertisements. It also applies to nationwide job postings if the employer meets the above definition.
Referral agencies, job placement, and other employment agencies are included in the definition of employer if they meet the above requirements. However, temporary help service firms or consulting firms (temp agencies) are not required to include the hourly wage or salary, or benefits and compensation information in a job posting. But, these temporary agencies are required to provide this information for temporary employment at the time of interview or hire for a new job opening.
The new law also requires employers to make reasonable efforts to announce internally or make known any opportunities for promotion, to affected departments, before making a promotion decision. Employers are not subject to this notice requirement if the promotion is awarded on the basis of years of experience or performance. Further, the law also does not prohibit employers from making a promotion on an emergent basis due to an unforeseen event. Importantly, an employer is free to increase the wages, benefits, or compensation that were identified in the published job posting when making a job offer to an applicant.
Failure to Comply: Failure to comply with this disclosure requirement for all postings for a particular job opening or transfer opportunity will be considered one violation, regardless of the number of postings for the position. A violation of the law carries a monetary penalty of up to $300 for the first violation and $600 for each subsequent violation. The law does not state that individuals can bring a private cause of action for violations, but guidance from the New Jersey Department of Labor (“NJDOL”) indicates that the NJDOL will review and adjudicate complaints from any individual who asserts a violation of the NJPBTA. At this time, administrative regulations interpreting the NJPBTA have not been published.
Takeaways: Employers must ensure compliance with the law’s requirements. The NJPBTA is the newest addition to a number of other New Jersey laws enacted to increase pay equity and allow current and prospective employees to obtain information about their compensation. Compliance can be accomplished by reviewing and updating internal procedures to ensure that any outside service providers handling job advertisements are compliant with the NJPBTA. If you do not already have established compensation or salary ranges for all positions, consider implementing pay ranges. For multistate employers, now is a good time to compare pay transparency requirements in other jurisdictions to ensure compliance and consistency with each jurisdictional requirement.
Finally, it is critical that you notify key personnel involved in making job advertisements and hiring decisions about the new requirements under the NJPBTA and provide relevant training.
