Beginning June 1, 2025, New Jersey’s new Pay Transparency Act will require covered employers to include detailed compensation information in job postings and adopt new protocols for announcing promotion opportunities. The law applies to employers with 10 or more employees working at least 20 calendar weeks in New Jersey, including private companies, public entities, and employment agencies. Temporary help service firms and certain consulting firms are exempt.

Under the Act, all job postings whether internal or external must include the hourly wage or salary (or a range), along with a description of benefits andany other compensation the employee would be eligible to receive in their first 12 months. Employers must also make “reasonable efforts” to notifycurrent employees of promotional opportunities before filling the role. The law defines a promotion as involving both a change in job title and an increase in compensation. Notably, this obligation does not apply to promotions based on tenure or performance, or to emergent situations requiring immediate staffing decisions.

Importantly, while the Act mandates transparency at the posting stage, it does not prevent employers from offering higher compensation at the time of hire. The law will be enforced by the New Jersey Department of Labor and Workforce Development, with civil penalties of up to $300 for a first violation and up to $600 for each subsequent violation. There is no private right of action under the statute.

With the June 1 deadline quickly approaching, employers should act now to ensure compliance. This includes reviewing and updating job postings, internal policies, and promotion procedures. Taking proactive steps now will help avoid penalties and align hiring practices with New Jersey’s growing push for pay equity and workplace transparency.

If you have any questions and/or require assistance determining compliance, please do not hesitate to contact any member of this Firm.