New Jersey’s Pay Transparency Law: What You Need to Know
Jan 22, 2025 | Written by: | Share
New Jersey’s Pay Transparency Law, set to take effect on June 1, 2025, aims to address persistent wage and salary disparities that contribute to workplace discrimination. Despite existing employment laws, identifying wage discrimination remains challenging, especially when employers discourage open discussions about pay. To combat this, New Jersey enacted a law in September 2024 requiring employers to disclose wage and salary details in job postings and transfer opportunities, promoting workplace equity.
The law applies to employers in New Jersey with at least ten employees working at least twenty weeks per year. Covered employers must include the hourly wage or salary, or a range, in job postings, as well as a “general description” of benefits and other compensation for which an employee would be eligible with respect to the listed job. This requirement applies to both external postings, such as job boards, and internal company announcements. Employers must also make reasonable efforts to notify current employees about promotion opportunities, either externally through platforms like social media or internally via email or the company’s intranet. Exceptions include promotions based on experience or performance, and urgent promotions due to unforeseen events.
Noncompliance with these provisions may result in fines of $300 for a first violation and $600 for subsequent violations. Each job posting or promotion opportunity without the required details counts as one violation, regardless of the number of platforms it appears on. With implementation taking effect in June 2025, businesses are encouraged to update hiring and promotion practices to comply.
Employers should act promptly to align their practices with the law to avoid penalties and safeguard their reputation. If you have any questions concerning this new law, or if you need assistance updating your practices to ensure compliance with this law, please contact one of the employment law attorneys at Gebhardt & Kiefer, P.C.
Sharon M. Flynn, Esq., is a partner with Gebhardt & Kiefer, P.C., and practices primarily in the areas of general litigation, employment law, and insurance defense.
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Any statements made herein are solely for informational purposes only and should not be relied upon or construed as legal advice.