New Law Now In Effect as of June 1, 2025
On June 1, 2025, New Jersey joined a growing list of states and localities, including New York State and New York City, requiring disclosure of salary ranges in job descriptions. The New Jersey Pay and Benefit Transparency Act is broader than other similar statutes.
Expansive Coverage Definition
The NJ law applies to all employers who have 10 or more employees over 20 calendar weeks or who do business, employ people, or take applications for employment within New Jersey. The manner in which out of state employees will count towards this threshold is unclear. However, it appears that employees outside the state, will likely “count” towards the threshold. This would be consistent with interpretation of other New Jersey laws. Similarly, employers without operations in New Jersey should pay attention if they “do business” or “take applications” in New Jersey.
Notice Requirements
Job Descriptions
In each posting for each new job, transfer opportunity or promotion that an employer advertises externally or internally, the employer must include the following:
- The hourly wage or salary, or the range thereof;
- A general description of the benefits; and
- Other compensation programs the employee may be eligible to receive within the first twelve months of employment.
The law applies to job postings in any format, including job search websites, print advertisements, newsletters, emails, and social media. If an employer chooses to include a salary range there must be a “top” and a “bottom” rate, rather than an “up to” rate.
If an employer offers employment to an applicant, they are not bound to the range included in job descriptions. The employer may increase the wages, benefits, and compensation at the time of offer from what is listed on the job posting.
Covered temporary help firms are required to follow a narrower disclosure requirement. These entities must only provide disclosures at the time of an interview or hire for a new opening.
Advance Notice of Promotions
Prior to making promotion decisions, the law requires that employers make reasonable efforts to make current employees in its affected departments aware of promotional opportunities. A promotion awarded based on years of experience or performance is not subject to this requirement. Additionally, the law exempts a promotion decision made “on an emergent basis due to an unforeseen event.” A “promotion” under this law means a change in job title and an increase in compensation.
Penalties for Noncompliance
An employer who (1) fails to announce, post, or otherwise make known an opportunity for employment, or (2) fails to include the required above listed information in a job posting will be found in violation of the law. Violations of each mandate will be deemed as an individual and separate violation subject to its own civil penalty. A first violation will be subject to up to a $300 penalty, and each violation thereafter will be subject to up to $600.
Takeaways for Employers
Going forward, employers who employ, do business or even take applications for employment in New Jersey should make sure they are in compliance with this new law.
Covered employers should make sure that their job descriptions (both internal and external) comply with the salary and benefits disclosure requirements of this new law. In addition, New Jersey covered employers should ensure they have a system in place to internally publicize promotion opportunities.
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