On June 1, 2025, The New Jersey Pay Transparency Act goes into effect.  Employers with 10 or more employees in 20 or more calendar weeks must comply with the provisions of the Act or face civil penalties and fines imposed by the New Jersey Commissioner of Labor and Workforce Development.

The Act requires employers to identify wage and salary information in internal and external job postings for new jobs, transfers and promotion opportunities.  This information includes:

• the hourly wage or salary, or a range of the hourly wage or salary of the position;
• a general description of benefits and other compensation programs for which an employee in the position would be eligible.

The Act does not prohibit an employer from increasing the wages, benefits and other compensation offered to an applicant beyond that which is posted.  It does apply to all employers that “do business, employ persons, or take applications for employment” in New Jersey.

The Act requires employers to make “reasonable efforts” to “announce, post, or otherwise make known” any promotion opportunity advertised “to all current employees in the affected department or departments of the employer’s business.”  “Promotion” is defined as a “change in job title and an increase in compensation.”  There are two exceptions to this notice requirement.  First, any promotion for a current employee that is “awarded on the basis of years of experience or performance” is not subject to this notice requirement.  In addition, promotions made on an “emergent basis due to an unforeseen event” are not included.

Temporary employment and consulting firms must also comply.  The Act requires these firms to provide temp workers the same “pay and benefit information” as required by other types of employers for the specific job opening.  These firms are not required to provide this information “on job postings that are posted for the purpose of identifying qualified applicants for potential job openings and not for existing job openings.”

There are civil penalties for violations:  $300 for a first violation and $600 for each subsequent violation.  While each violation of the law will be considered a “separate violation,” the Act states that employers will be fined only once for each posting.  Further, the law does not provide for a right of action for individuals who claim a violation.  Fines are payable to the Commissioner of Labor and Workforce Development.

New Jersey employers must adjust their protocols:

• Employers must modify recruitment and communication processes in compliance with the law.  
• Update job postings according to the requirements of the Act.
• Utilize professional resources to determine compensation ranges for various positions.
• Address pay differentials and consider equitable relief to found discrepancies.
• Establish systems to notify current employees about promotion opportunities.
• Provide guidance to human resource professionals on the new disclosure requirements.

New Jersey employers must comply with the Pay Transparency Act on or before June 1, 2025.  If you have any questions or concerns, please contact James F. Devine, Esq., our Employment Practice Chair, at jfdevine@c-wlaw.com or by phone at (717) 390-3020.

Disclaimer

The information in this article is provided for general informational purposes only and may not reflect the current law in your jurisdiction.  By reading this article, you understand that there is no attorney-client relationship between you and Cipriani & Werner, P.C. or any of our attorneys.  No information contained in this article should be construed as legal advice from Cipriani & Werner, P.C. or the individual authors.