Effective June 1, 2025, New Jersey will join the growing list of states requiring employers to disclose pay and benefit details in job postings and internal promotions. This new legislation aims to promote workplace fairness and transparency. Businesses operating in the state should understand the law’s implications and take proactive steps to ensure compliance. Here’s a summary of what this means for employers and practical advice on how to prepare.
For more information on the new pay transparency law and its potential impact on your organization, contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Key Requirements
Effective June 1, 2025, New Jersey’s Pay Transparency Law imposes the following obligations on employers with at least 10 employees who operate or recruit in New Jersey:
Compensation Disclosure in Job Postings
Employers must include the hourly wage or salary (or a range) and a general description of benefits and other compensation programs in all postings for:
New jobs
Transfer opportunities, whether advertised internally or externally
Promotion Announcements
Employers are required to make “reasonable efforts” to notify all current employees in affected departments about promotional opportunities before making a decision. For the purposes of the law, a “promotion” is defined as a change in job title accompanied by an increase in compensation.
Application to Temporary Workers
Temporary help service firms and consulting firms must provide pay and benefits information to temporary workers when hiring for specific positions. However, general job postings seeking applicants for future roles are exempt.
Noncompliance and Penalties
Failing to comply with these new rules can result in financial penalties. While the fines for violations may appear modest—starting at $300 for a first offense and escalating to $600 for subsequent offenses—the potential damage to a company’s reputation and the legal ramifications of noncompliance could be far more significant.
How Employers Can Prepare
Conduct a Pay Structure Review: Assess your current pay practices to ensure they align with legal standards and reflect equity across roles. Identify and address any inconsistencies before the law takes effect.
Update Job Posting Templates: Incorporate salary ranges, benefits, and additional compensation details into your job posting templates. Establish a consistent process to ensure compliance with both external and internal postings.
Enhance Internal Communication: Create clear procedures for notifying employees about promotional opportunities. Ensure your HR team understands how to communicate these changes effectively.
Train Relevant Staff: Educate HR and recruitment teams on the new requirements, including how to calculate and disclose pay ranges accurately. Emphasize the importance of compliance to avoid penalties.
Conclusion
New Jersey’s Pay Transparency Law is a significant step toward fostering equity and accountability in the workplace. For employers, the transition to these new requirements may involve operational adjustments, but the long-term benefits—such as improved employee trust and a stronger reputation in the labor market—make this a worthwhile endeavor.
As the June 2025 deadline approaches, businesses should act now to review their pay practices, update their job posting processes, and train their teams. Preparing early will not only ensure compliance but also position your organization as a leader in workplace fairness and transparency.
For more information on the new pay transparency law and its potential impact on your organization, contact our Managing Partner, Richard Liu, at richard.liu@consultils.com.
Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.
Richard Liu, Esq. is the Managing Counsel of ILS. He serves clients as a management-side defense lawyer specializing in employment and business litigation. Richard is also an expert on litigation prevention and compliance. He regularly advises Fortune 500 companies and startups on employment, labor, and commercial matters.
Email: richard.liu@consultils.com | Phone: 626-344-8949
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