New Jersey’s New Pay Transparency Law to Take Effect

News Summary

Starting June 1, 2025, New Jersey will implement a pay transparency law mandating businesses with ten or more employees to include salary information in job postings. Signed by Governor Phil Murphy, the law aims to promote fairer salary negotiations and improve job seeker awareness. Violations can lead to fines and civil litigation, positioning New Jersey competitively with similar measures in New York City. As salary transparency becomes the norm, it seeks to address wage gaps, especially for underrepresented groups, and foster equitable workplace discussions.

Trenton, New Jersey – New Jersey is set to enforce a new pay transparency law starting June 1, 2025, requiring all businesses with ten or more employees to include wage or salary information in job postings. The legislation, which was signed by Governor Phil Murphy in October 2024, also mandates employers to provide a description of all job benefits, a move aimed at streamlining the hiring process and establishing fairer salary negotiations for job applicants.

The implementation of this law positions New Jersey to be more competitive with nearby cities such as New York City, which has enacted similar pay transparency requirements. Observers believe that these changes can enhance job seekers’ ability to make informed decisions and negotiate salaries effectively. As more companies adapt to transparency expectations, job postings in New Jersey may start reflecting realistic salary ranges, potentially ranging from $40,000 to $80,000.

Employers who fail to comply with the law will face penalties starting with a $300 fine for a first-time violation, escalating to $600 for subsequent offenses. Previous drafts of the bill considered much higher fines, emphasizing the seriousness of adhering to these new requirements. Additionally, the law includes provisions for potential civil litigation, which acts as a strong deterrent against non-compliance.

In North Jersey and the New York City metropolitan area, salary information is already becoming a norm, with reports in February 2023 indicating that 56% of job postings included salary ranges, an increase from less than 24% the previous year. Advocates of the law argue that it aims to close significant wage gaps, particularly benefiting women and minority groups who are often underrepresented in salary discussions.

New Jersey’s new law follows in the footsteps of other states implementing similar transparency measures, including Connecticut, which began its law in 2021, and New York, which followed suit in 2022. Other states with established pay transparency laws, as reported by the Center for American Progress, include California, Colorado, Maryland, Nevada, Rhode Island, and Washington.

Within New Jersey, separate regulations exist that prohibit employers from inquiring about the salary histories of job applicants, aiming to prevent gender-based wage disparities from persisting. Furthermore, Jersey City introduced its own pay transparency ordinance in 2022, applicable to employers with at least five employees. Importantly, the new statewide law will not diminish local ordinances that may impose stricter requirements.

Concerns have been raised regarding the potential for excessively broad salary ranges in job postings, a trend observed in New York City that some fear could migrate to New Jersey if not kept in check. Employers will need to navigate compliance, particularly those that operate across state lines, given that pay structures may differ significantly in various jurisdictions.

The new law promotes open discussions about salaries among employees, creating a more transparent workplace atmosphere. It safeguards employees from retaliation for sharing wage information, thus fostering equity and fairness in the workplace. Observers note that these requirements should not come as a surprise to employers, as the push for pay transparency has been growing over recent years.

The pay transparency law is part of Governor Murphy’s broader efforts to ensure equitable workplace practices across New Jersey. As the enforcement date approaches, businesses will need to prepare to meet these new standards, marking a significant step towards improving pay equity and transparency in the state’s job market.

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Additional Resources

• ABC 6 News
• JD Supra
• New Jersey Monitor
• Ogletree Deakins
• Jackson Lewis
• Wikipedia: Pay Transparency