New Jersey law requires disclosures, pay transparency in job postings 

December 2, 2024

 

On Nov. 18, 2024, New Jersey’s governor signed legislation (S2310/A4151) that will require employers with 10 or more employees to disclose promotion opportunities to employees and salary range and benefit disclosures in job postings. The law, which will be enforced by the Division of Labor and Workforce Development, will take effect in June 2024. As a reminder, New Jersey already prohibits private employers from inquiring about a job applicant’s salary history, benefits and other compensation during the hiring process. 

Application. “Employer” means 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 — including the state, any county or municipality, or any instrumentality thereof. This includes job placement and referral agencies and other employment agencies.

Promotion opportunity disclosure. Prior to making a promotion decision, employers must make reasonable efforts to announce promotion opportunities by advertising them internally or externally on internet-based advertisements, postings, printed fliers, or other similar advertisements to all employees in any affected department. “Promotion” is defined as a change in job title and an increase in compensation. Each failure to announce, post, or otherwise make known one promotional opportunity will constitute a separate violation.

Promotions awarded based on years of experience or performance or made “on an emergent basis due to an unforeseen event,” are not subject to these requirements.

Salary range disclosures in job postings. In each internal or external posting for promotions, new jobs, or transfer opportunities, employers must disclose the hourly wage or salary, or a range of the hourly wage or salary, and a list of benefits and other compensation programs the employee would be eligible for within the first 12 months of employment. Each failure to include the information required in a particular job posting will constitute a separate violation. Employers will still be able to increase the wages, benefits, and compensation identified in the job posting when an employment offer is made.

Penalties. The Commissioner of Labor and Workforce Development may enforce the provisions of the bill in a summary proceeding, and an employer who violates the bill will be subject to a civil penalty in an amount not to exceed $1,000 for the first violation, $5,000 for the second violation and $10,000 for each subsequent violation.

Exception for temporary health services firms and consulting firms. Temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety shall not be required to provide, on job postings that are posted for the purpose of identifying qualified applicants for potential future job openings and not for existing job openings:

• The hourly wage or salary, or range of hourly wage or salary; or
• A list of benefits and other compensation programs the employee would be eligible for within the first 12 months of employment.

However, they are required to provide this information during the interview or when a candidate is hired for a specific job opening.

In recent years, several states have enacted legislation requiring the disclosure of salary ranges and pay data. For example, in New York an employer, employment agency, employee or agent thereof must include compensation or the compensation range when advertising a job, promotion or transfer opportunity that will physically (at least in part) be performed in New York. Employers must disclose — voluntarily or upon request — information about salary ranges for open positions or promotions in California, Connecticut, Hawaii, Illinois, Maryland, Massachusetts (effective July 31, 2025), Minnesota, Nevada, Rhode Island, Vermont (effective Jan. 1, 2025), Washington and Washington, DC.

New Jersey’s legislation — like Colorado — is an example of pay transparency broadening into opportunity transparency, aimed at increasing the visibility of job opportunities to employees and candidates.

For more information, please refer to the Roundup: US employer resources on states’ recent equal pay laws.

As legislation continues to expand domestically, current and upcoming international changes such as the European Union directive on pay equity and transparency are driving several organizations to revisit their programs to take a more global approach. Recent research from Mercer’s Global Pay Transparency Survey reveals that 68% of organizations are developing their approach or have already implemented one. A recent webinar on this topic provides an overview of the international research.

Assess readiness: review the compensation foundation for the following

Are jobs clearly defined?

• Is pay aligned to pay philosophy and market?
• Has the organization’s pay equity been analyzed?
• Are managers equipped to communicate pay ranges? 

Set your destination: address key questions around where you’re headed

• What will be shared (e.g., what elements of pay and total rewards)?
• Who will it be shared with — all employees, managers only, certain segments?
• How will it be shared?

Plan for the journey: address gaps and risks in your current environment

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

Share the story: address gaps and risks in the current environment

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

Measure the impact: assess success through data and insights

• Applicants per opening, time to fill, offer acceptance rates
• Candidate surveys
• Employee engagement and perceptions
• Statistical modeling around turnover and other outcomes

• S 2310 (Legislature) 

• Roundup: US employer resources on states’ recent equal pay laws (regularly updated)
• Massachusetts to require salary disclosures, wage data reporting (Aug. 12, 2024)
• Vermont to require pay range disclosures in job advertisements (Aug. 5, 2024)
• Minnesota to require salary range and benefit disclosures in job postings (May 23, 2024)
• Washington, DC, to enhance wage transparency (May 14, 2024)
• Colorado amends equal pay requirements (Dec. 13, 2023)
• Illinois to require pay scale and benefits disclosure in job postings (Aug. 28, 2023)
• Hawaii to require pay disclosure in job listings, expands equal pay law (July 18, 2023)
• EU pay transparency law approved (May 30, 2023)
• New York to require salary ranges in job postings (March 9, 2023) 
• California to impose more salary disclosure, pay data reporting (Oct. 3, 2022)
• Salary information will be required in New York City job postings (May 4, 2022)
• Washington regulator clarifies new pay disclosure requirements (Dec. 19, 2019)