In line with several other states and localities with pay
transparency laws, New Jersey has joined the ranks by enacting a
law that will require employers to share salary information in job
postings.
Effective June 1, 2025, the new law mandates that covered employers
disclose in each posting for new jobs and transfer opportunities
that are advertised either externally or internally the hourly wage
or salary, or a range of the hourly wage or salary, and a general
description of benefits and other compensation programs for which
the employee would be eligible. The law does not define what
constitutes a "transfer" opportunity. There are some
special considerations for temporary help service firms and
consulting firms. Notably, the law does not prohibit an employer
from increasing the wages, benefits, and compensation identified in
the job posting at the time it makes a job offer to an
applicant.
A covered employer is one with at least 10 employees over 20
calendar weeks that does business, employs persons, or takes
applications for employment within New Jersey, including job
placement, referral, and other employment agencies. Accordingly,
businesses are likely implicated even if they currently do not
physically have employees in the state.
With respect to promotions, an employer must make reasonable efforts to announce or post opportunities for promotion that are advertised internally or externally to all current employees in the affected department(s) prior to making a promotion decision, provided that a promotion "that is awarded on the basis of years of experience or performance" is not subject to these notification requirements. Additionally, an employer can make a promotion on an "emergent basis due to an unforeseen event." For purposes of the law, a "promotion" means a change in job title and an increase in compensation.
An employer that violates the law is subject to potential civil penalties in an amount not to exceed $300 for the first violation and $600 for each subsequent violation. An employer's failure to comply with the requirements for a particular job opening or transfer or promotional opportunity will be considered one violation regardless of the number of postings that list, or forums that advertise, an opening or opportunity. The New Jersey Department of Labor and Workforce Development will enforce the law. The law does not provide for a private right of action.
Salary transparency laws continue to be the trend, with New Jersey joining jurisdictions with existing laws, such as California, Colorado, Illinois, Maryland, New York City, New York State, and Washington State. Notably, Jersey City also has a pay transparency law that applies to employers within the city with five or more employees. Where an applicable local law imposes more stringent requirements than applicable state law, the employer must comply with both.
The growing host of pay transparency and job posting laws in various jurisdictions presents compliance considerations particularly for those employers that hire nationally as well as for those employers that hire remotely and/or accept applications from persons in jurisdictions that have such laws.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
