New Jersey Pay Transparency Law: A Step Toward Workplace Equity and Transparency

On November 18, 2024, Governor Phil Murphy signed Senate Bill 2310 into law, commonly referred to as the New Jersey Pay Transparency Law. Effective June 1, 2025, the law establishes new requirements for employers related to job postings and internal promotional opportunities. As the implementation date approaches, it’s important for employers to understand their responsibilities and take steps to comply.

Which Employers Are Covered?

The law applies to employers with 10 or more employees over 20 calendar weeks who:

• Conduct business in New Jersey,
• Employ workers in New Jersey, or
• Accept applications for employment in New Jersey

Covered employers include private businesses, public entities, and employment agencies.

Job Posting and Compensation Disclosures

The law sets new standards for job postings. When advertising positions, either externally or internally, employers must include:

• The hourly wage or salary, or a range of compensation
• A general description of benefits and other forms of compensation

While employers may still offer compensation above the posted rates or ranges, these disclosures aim to provide applicants with a clearer understanding of pay and benefits at the time of application.

Promotional Opportunity Requirements

Covered employers must also make reasonable efforts to announce promotional opportunities to all eligible employees within their department(s) before filling a position. This requirement is intended to promote transparency in advancement decisions and ensure employees have access to information about open roles.

Exceptions and Penalties

There are limited exceptions, including promotions based on seniority or performance, or those made in response to an emergency. However, failure to comply with the law may result in civil penalties:

• $300 for a first violation
• $600 for subsequent violations

Multiple postings for the same job or promotion opportunity will be treated as one violation.

Preparing for Compliance

To prepare for the June 1, 2025, implementation, employers should consider the following steps:

• Review and update internal promotion and job posting practices
• Create or revise templates for job postings to include required disclosures
• Train HR and management teams on the new requirements

EANJ’s Role

EANJ supports employers in understanding and implementing workplace compliance requirements. We offer practical guidance, policy templates, and training to help your organization adapt. If you have questions about how the New Jersey Pay Transparency Law applies to your business, EANJ is here to help.