As conversations around wage equity and workplace fairness continue to gain traction, New Jersey is officially joining a growing number of U.S. states enacting pay transparency legislation. Effective June 1, 2025, the New Jersey Pay Transparency Law imposes new obligations on employers regarding compensation disclosures in job postings.

If you’re a compliance professional, HR leader, or business owner with operations in New Jersey, now is the time to prepare.

What Does the Law Require?

Under the new law, employers with 10 or more employees over 20 calendar weeks must include the following information in every posting (internal or external) of job and transfer opportunities:

1. The hourly wage or salary range reasonably expected for the position
2. A general description of benefits and other forms of compensation offered

This applies not just to new hires, but also to internal promotions and lateral job transfers — making transparency a company-wide requirement.

Penalties for Non-Compliance

Failure to comply isn’t just a policy issue — it could be a financial one too.

1. First violation: Up to $300
2. Subsequent violations: Up to $600 each

Each instance of non-compliance counts as a separate violation, so repeated or widespread failures to update postings could quickly become costly.

Exceptions You Should Know

The law carves out certain exceptions for internal promotions. For example, if a role is filled due to an emergency vacancy, or if promotions are awarded based strictly on seniority or performance, the standard job posting requirements might not apply. That said, these scenarios must be properly documented and justified to withstand scrutiny.

A Compliance-Focused Approach

From a compliance standpoint, here’s what is recommended:

1. Audit all job roles: Make sure compensation bands are updated and supported by internal data.
2. Revise job templates: Add fields for salary range and benefits summary, and review all external postings.
3. Update internal promotion protocols: Ensure reasonable efforts are made to communicate open roles internally.
4. Train HR and hiring managers: Everyone involved in recruiting should understand what’s required and why it matters.

Why This Matters Beyond Compliance

At its core, this law is about more than just ticking boxes. Pay transparency builds trust, accountability, and equity — and increasingly, it’s what top talent expects. A transparent approach also minimizes the risk of pay discrimination claims and can position your company as a forward-thinking employer.

With similar laws already in place in states like California, New York, and Colorado — and more likely on the way — staying ahead of the curve in New Jersey could be the compliance edge your organization needs in 2025.

Source: https://www.njleg.state.nj.us/bill-search/2024/S2310/bill-text?f=PL24&n=91_

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