NJ Pay Transparency Law - What Does It Mean for Employers and Employees?
- Leslie A. Farber
- Jul 10
- 3 min read
New Jersey lawmakers have taken action to address pay equity. The Garden State is one of five states with pay transparency laws taking effect in 2025. This new law puts some additional burdens on employers with regard to the disclosure of salaries and other benefits. Such disclosures enable job seekers to learn what a position pays before applying - helping them to make better informed decisions - while current employees gain the ability to compare their compensation with colleagues in similar roles to highlight unfair practices. Not all employers, however, are impacted by the new law. Here’s what you need to know.
When the Pay Transparency Law Kicks In
The New Jersey law, officially called the Pay Transparency Act, became law on November 18, 2024, and went into effect on June 1, 2025. So, if you’re an employer and you haven’t made yourself aware of what the law now requires of you, read on to get yourself up to speed.
The Main Purposes of Pay Transparency Laws
Reducing Wage Gaps: Insight into salaries makes it easier to detect and address disparities among genders, races, and ethnicities.
Promoting Fair Hiring Practices: Disclosing salary ranges in job postings and interviews prevents low ball offers.
Empowering Employees: Workers can now compare compensation and more effectively negotiate.
Who the Law Applies to
The Pay Transparency Act applies to employers with 10 or more employees working at least 20 calendar weeks and who do business, employ persons, or take applications for employment in New Jersey.
It is important to note that under the Act, an employer is defined as a person, company, corporation, firm, labor organization, or association, as well as placement and referral agencies and other employment agencies.
The Act does not specify that all 10 employees must work in New Jersey. A company could fall under the Act if they had 10 employees and took applications for employment in New Jersey.
What the Pay Transparency Act Requires
The Act imposes two requirements:
All job postings - internal or external - must include the hourly wage or salary (or a range) and a general description of benefits and other compensation programs for which the employee would be eligible during the first 12 months of employment.
Employers must make reasonable efforts to announce, post, or otherwise make known opportunities for promotion that are advertised internally within the employer or externally prior to making a promotion decision.
A promotion is defined as a change in job title and an increase in compensation.
Exceptions to Requirements
The law does provide for some exceptions:
Posting for potential future job openings by temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety
Promotions for a current employee that are awarded based on years of experience or performance
Promotions made on an emergent basis due to an unforeseen event.
Penalties for Noncompliance
Employers that violate the Pay Transparency Act will be subject to a civil penalty of up to $300 for the first violation, and up to $600 for each subsequent violation. The Act does not provide for a private cause of action, which means you cannot personally sue an employer who violates this law. But the State can impose penalties for violations.
How Employers Should Move Forward in Light of the Act
To ensure compliance, organizations should:
Review pay ranges for each position to make sure they are equitable
Conduct pay audits to uncover any disparities
Ensure required pay transparency information is on current job posts - internal and through recruiters
Devise a process for alerting existing employees of promotional opportunities
Train HR and recruiters on how to comply with the Act
Being proactive will help your organization to follow the new requirements.
If you have questions about compliance with the new law, please contact us at 973.707.3322 or LFarber@LFarberLaw.com.
