New Jersey Pay Transparency Law: What Employers Need to Know

On November 18, 2024, Governor Murphy signed legislation requiring New Jersey employers with 10 or more employees to disclose certain compensation benefits information in job advertisements.

What does the law require?

This new law requires employers to disclose in every job posting “the hourly wage or salary or range of hourly wage or salary, as well as a list of benefits and other compensation programs to which the employee would be entitled within the first 12 months of employment.” This applies to “promotions, new positions and transfer opportunities” advertised internally, externally or both. The law does not prohibit the employer from increasing the wages, benefits, or compensation specified in the advertisement if the employer offers the position to an internal or external candidate. Rather, the advertised remuneration and additional benefits serve as a lower limit for what the employer can offer and pay applicants and employees who accept the advertised positions.

The law also requires that employers “make reasonable efforts to announce, publicize, or otherwise make known to all current employees promotion opportunities promoted internally within the employer or externally in Internet-based advertisements, postings, flyers, or other similar advertisements .” the affected department(s) of the employer’s company before a promotion decision is made.” Promotions are defined as “a change in job title and an increase in compensation.” The new law does not require internal notice if a current employee’s promotion is based on “decades of experience or performance.” The law also provides an exception for unforeseen events that require internal advertising without advertising.

Who does the law apply to?

The law applies to any “person, firm, corporation, company, labor organization or association that employs 10 or more employees and does business within (New Jersey) within a 20 calendar week period.” Employment and placement agencies are specifically covered by this new law. The law does not apply to temporary employment agencies and consulting firms registered with the Department of Consumer Affairs.

What are the penalties/consequences for non-enforcement?

Unlike most employment laws, such as the New Jersey Law Against Discrimination, this new law does not provide a private right of action or cause of action. Rather, the Commissioner of Labor and Workforce Development may enforce the provisions of this disclosure law. The Labor and Workforce Development Commission has the authority to impose civil penalties not to exceed $600 for each subsequent violation.

When does this law come into force??

June 1, 2025.