New Jersey joins pay transparency movement

Effective June 1, 2025, employers with 10 or more employees are now required to disclose information about salary and benefits when posting job openings or internal transfer opportunities within the state. The New Jersey Pay and Benefit Transparency Act (91_.PDF) is significant for employers— no matter where they are physically located— as it applies to any business that employs workers in New Jersey or accepts job applications from individuals based in the state. 

Key Provisions of the Law

The law mandates that employers must include pay ranges and benefits information in all internal and external postings — whether published on the internet, via posters and flyers, or on other similar advertisements. Specifically, employers are required to provide details about hourly wages, annual salaries, or salary ranges, accompanied by a general description of benefits. The range must have a starting and ending point; stating, for example, “up to $35 per hour” or “$70,000 per year and above” is not sufficient. However, businesses have the flexibility to increase compensation upon making an official offer to a candidate, allowing room for negotiation in final salary discussions. 

Additionally, employers must make "reasonable efforts" to inform their current employees about promotional opportunities before making promotion decisions. However, an employer may make a promotion decision on an “emergent basis due to an unforeseen event.” 

Steps Employers Should Take Now

1. Conduct a Pay Equity Audit – Start with a proactive review of compensation practices to ensure compliance with both New Jersey’s Equal Pay Act and to identify any compensation disparities that may require correction.
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2. Update Job Posting Templates and Procedures – Revise job posting procedures to align with the new requirements, including those for internal promotions. Ensure that templates used for job postings consistently include sections for pay ranges, benefits, and overall compensation.
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3. Establish a Promotion Notification Policy – Create clear internal procedures to ensure that promotional opportunities are communicated fairly and consistently to eligible employees. Effective and consistent communication regarding open roles and potential advancement paths is critical to avoid noncompliance.
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4. Train Management, HR and Recruitment Staff – This training should focus on determining and documenting pay ranges and effectively communicating this information to applicants and promotion candidates.

Compliance and Penalties

Failure to comply with the new law can result in civil penalties. Employers could face fines of up to $300 for a first violation and $600 for subsequent violations, with each posting or promotional opportunity that fails to meet requirements counting as a separate violation. If an employer publishes the same job posting in multiple places at the same time, for example, in a newspaper, job search website and social media, it will be considered one violation. However, if an employer advertises multiple roles at the same time, the state’s Department of Labor and Workforce Development will assess one penalty for each role where the posting is noncompliant with the Act. Unlike some other jurisdictions, the law does not permit individuals to sue for enforcement; rather, compliance will be overseen by the New Jersey Department of Labor.

It’s also important for employers to note that this new law does not override local pay transparency regulations, which may impose stricter requirements or higher penalties. For example, Jersey City has its own pay transparency law that applies to employers with as few as five employees and carries a penalty of up to $2,000 for violations.

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How We Can Help

At Brahvo, we recognize the complexities these new requirements present, especially for businesses operating across state lines or with intricate compensation structures. Our team is ready to assist you in developing compliant job posting templates, establishing internal promotion protocols, conducting pay equity audits, and navigating the interaction between this new law and existing equal pay and anti-discrimination requirements.

With proper preparation, your business can smoothly transition into compliance with these new pay transparency requirements while maintaining the necessary discretion in compensation decisions and minimizing the risk of potential claims.

For more information or to schedule a consultation, contact us today. We are here to help you understand your needs and provide tailored solutions.