A new state law requiring transparency about salaries in employment listings and promotional opportunities was signed into law this week and will take effect June 1, 2025.
The law applies to employers with 10 or more employees (during at least 20 calendar weeks) who do business, employ people, or accept job applications within New Jersey. Specifically, it applies to corporations, businesses labor organizations, associations, employment agencies and job placement or referral services.
The legislation, S-2310/A-4151 (Moriarty/Danielsen) signed by Gov. Phil Murphy on Monday, requires job postings to include the salary or hourly wage (or the range of the salary or hourly wage) for a position or transfer opportunity, as well as a general description of benefits and other compensation programs for which the employee would be eligible.
“Far too often, employees are uncertain or unaware of opportunities for growth and added compensation and this bill is designed to change that,” said Assemblyman Joe Danielsen (D-17). “Every employee deserves a fair chance at advancement, and this bill will provide an extra resource in making sure job promotions are well publicized.”
Sen. Paul Moriarty (D-4), a Senate sponsor of the legislation, said eight states – including New York and Connecticut – already have pay transparency laws.
“Job seekers should have a complete picture of salary and benefits before they apply for a position,” Moriarty said. “Why make people jump through hoops, only to find out at the end that they’re not going to be paid what they think they deserve?”
NJBIA worked with the sponsors to secure amendments that made the legislation more workable for employers, including a provision allowing them to award promotions based on tenure and/or performance without being subjected to the bill’s notification requirements.
Other NJBIA-supported amendments raised the number of employees to 10 for a business to be covered by the bill’s provisions and eliminated the “private right of action” that would have potentially allowed applicants to sue in civil court over alleged violations.
Additionally, the law allows employers to increase the wages, benefits, and compensation identified in the job posting at the time when an offer for employment is made to the applicant.
Temporary help service firms and consulting firms, however, are required to provide the same pay and benefit information to an applicant for temporary employment at the time of interview or hire for a specific job opening. However, temporary help service and consulting firms are not required to include this information in postings “that are posted for the purpose of identifying qualified applicants for potential future job openings and not for existing job openings.”
The law requires covered employers to make “reasonable efforts” to announce, post, or otherwise make known, promotional opportunities to all current employees in the affected department(s) prior to making a promotion decision. However, exceptions are permitted for an employee who is awarded a promotion based on years of experience or performance, or in cases when a promotion is made on an emergent basis due to an unforeseen event.
Any employer that fails to comply with the law would be subject to a civil penalty not to exceed $300 for the first violation and $600 for each subsequent violation. The state Department of Labor and Workforce Development would enforce the law.
NJBIA members with questions about how the new law will impact your operations once it becomes effective June 1, can contact NJBIA Vice President of Government Affairs Elissa Frank.
