New Jersey Pay Transparency Law In Effect
The New Jersey Pay and Benefit Transparency Act (NJPBTA), N.J.S.A. 34:6B-23, went into effect on June 1, 2025, requiring employers to disclose the pay, benefits, and other compensation for open positions in job advertisements. New Jersey is now among a growing number of states with a pay transparency law.
Covered Employers Under the NJPBTA
- Employers: The NJPBTA applies to any person, company, corporation, firm, labor organization, or association which: (1) has 10 or more employees over 20 calendar weeks; and (2) does business, employs people, or takes applications for employment within New Jersey. All State, county, and local government bodies are included in this categorization. Job placement and referral agencies also are covered by the NJPBTA, and temporary help service firms are covered but with reduced requirements.
- Employers based outside of NJ: Employers based outside of New Jersey are legally bound by the NJPBTA if they have at least 10 employees and: (1) have at least one employee working in NJ; (2) contract with or sell products or services to New Jersey businesses or customers; or (3) take job applications from New Jersey residents.
Employer Requirements
- Job Postings: In any internal or external posting for a new job or transfer opportunity, an employer must publish: (1) the hourly wage or salary, or a range of the hourly wage or salary; (2) a general description of benefits for which the employee would be eligible; and (3) any other compensation programs for which the employee would be eligible. The pay range should have a starting and ending point (like $25 – $35 per hour) and should not leave out the bottom range (like “up to $35 per hour”) or the top end of the range (like “$25 per hour or more”). Benefits should include a general description of benefits offered and not include phrases like “great benefits offered” or “health insurance and more.”
- Internal Promotions: Employers are required to make reasonable efforts to announce, post, or otherwise make known promotional opportunities that are advertised internally or externally to all current employees in the affected department(s) prior to making a promotion decision. This notification requirement does not apply to promotions awarded on the basis of years of experience or performance or to promotions made on an emergent basis due to an unforeseen event. The NJPBTA defines “promotion” as a change in job title and an increase in compensation.
Penalties for Violations
- Fines: Any employer that violates the NJPBTA can be assessed a penalty of up to $300 for the first violation, then up to $600 for subsequent violations, by the New Jersey Department of Labor.
- The NJPBTA does not include a private cause of action.
Employers should review and revise their job advertisements to ensure compliance with the NJPBTA. For more information or guidance on the NJPBTA’s requirements, please contact Walsh’s Labor and Employment Law attorneys.
This article was authored by Walsh Pizzi O’Reilly Falanga LLP Summer Associate and Seton Hall University School of Law J.D. Candidate, Liam Gannon.