New Jersey's Pay and Benefit Transparency Act - What Employers Need to Know
By: Justin P. Kolbenschlag
Effective June 1, 2025, New Jersey joined a growing list of states that have enacted laws requiring pay transparency in employment listings and promotional opportunities for New Jersey employers. Specifically, the New Jersey Pay and Benefit Transparency Act requires employers with 10 or more employees over 20 calendar weeks that do business, employ workers, or take applications for employment in New Jersey to comply with certain wage disclosure requirements for both promotional opportunities and employment listings. This includes job placement and referral agencies and other employment agencies.
As of June 1, 2025, New Jersey employers posting for a new job are required to post the hourly wage/salary range, description of benefits, and other compensation programs for which the employee would be eligible. While the wage or salary range creates a floor for compensation in the position, the law does not prohibit employers from offering enhanced wages, benefits or other compensation at the time the employer makes a job offer to an applicant.
Employers are also required to post this information for transfer opportunities that are advertised internally or externally. With regard to promotional opportunities, the law requires employers to make “reasonable efforts” to announce or post the opportunity to those employees within their department that are advertised either internally or externally through Internet-based advertisements, postings, printed flyers or other similar advertisements prior to making a promotion decision, unless the decision is based on years of experience or performance.
Although the new law does not provide a private right of action to employees or prospective employees, it permits the New Jersey Commissioner of Labor and Workforce Development to issue and collect civil penalties not exceeding $300 for the first violation and $600 for subsequent violations. Additionally, the purpose of the new law is to increase pay transparency to ensure compliance with state and federal equal pay requirements.
New Jersey employers should immediately audit their pay ranges and practices for various positions to ensure compliance with the new disclosure obligations and to avoid claims of pay inequality. Employers should also carefully review their job posting procedures and templates with legal counsel to ensure compliance, including procedures utilized by third-party job recruiters.
For more information about how this may apply to your business, please contact the attorneys at Pashman Stein Walder Hayden P.C.