Employer Obligations Under New Jersey’s Pay Transparency Law, by Karol Corbin Walker, Esq. and Nicholas J. Falcone, Esq., 1-8-2025

New Jersey employers should start preparing for the state’s new pay transparency law, which takes effect on June 1, 2025.

A4151/S2310, signed into law by Governor Phil Murphy on November 18, 2024, requires employers with 10 or more employees over 20 calendar weeks and does business, employs persons or takes applications within the State, to disclose certain compensation and benefits information in job postings and promotional opportunities.

Disclosure Obligations

Among its provisions, the bill will require covered employers to disclose in each posting for new jobs and transfer opportunities 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. This law does not prohibit an employer from increasing the wages, benefits, and compensation identified in the job opening posting at the time of making an offer for employment to an applicant.

Regarding promotions, the bill requires employers to “make reasonable efforts to announce, post, or otherwise make known opportunities for promotion that are advertised internally within the employer or externally on internet-based advertisements, postings, printed flyers, or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision.” However, “any promotion that is awarded on the basis of years of experience or performance shall not be subject to the notification requirements” established in this statute. Nothing shall be construed to prohibit an employer from making a promotion on an emergent basis due to an unforeseen event.

Promotions are defined as “a change in job title and increase in compensation.”

Covered Employers

The statute defines employer as “any person, company, corporation, firm, labor organization, or association, which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within” New Jersey. This includes job placement, referral agencies and other employment agencies that meet these criteria.

There are exceptions under certain circumstances for temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety, if they are identifying qualified applicants for potential future job openings and not for existing job openings.

Failure to comply will result in fines starting at $300 for the first violation and $600 for each subsequent violation.

Therefore, covered employers should start preparing now. Among best practices, employers should consider the following:

• Training managers on the requirements of the new law;
• Making sure applicable postings are updated to reflect the new provisions of the law; and
• Reviewing salaries and compensation packages, as a publication of wages and benefits for a position could lead to Equal Pay Law complaints by those in the same or similar positions.

Kaufman Dolowich will continue to monitor new developments.

Authors: Partner Karol Corbin Walker, Esq. and Of Counsel Nicholas J. Falcone, Esq.