On June 1, 2025, New Jersey began requiring employers to disclose salary ranges and benefits information. Signed by Governor Phil Murphy, this legislation mandates that employers with 10 or more employees provide clear and accessible information regarding compensation and promotional opportunities. This move aligns New Jersey with a growing number of states implementing pay transparency laws, aiming to foster a more equitable work environment and reduce wage disparities.
Covered Employers
Covered employers are any person, company, corporation, firm, labor organization, or association which:
- Has 10 or more employees over 20 or more calendar weeks; and
- Does business, employs persons, or takes applications for employment within New Jersey.
Public employers are also covered under the law.
Job placement, referral agencies, and other employment agencies are also covered employers.
Unlike other employers, temporary help service firms or consulting firms (temp agencies) are only required to provide the hourly wage or salary, and a general description of benefits and other compensation, at the time of interview or hiring for a new position.
Key Provisions of the Law
The new law applies to both private and public employers, including those based outside New Jersey if they have employees working within the state. Employers are now required to:
- Disclose Salary Ranges: Employers must post salary ranges for all job positions, ensuring that potential and current employees have a clear understanding of the compensation associated with their roles.
- Provide Benefits Information: In addition to salary ranges, employers must also disclose information about benefits offered, such as health insurance, retirement plans, and other perks.
- Highlight Promotional Opportunities: Employers are obligated to inform employees about available promotional opportunities, promoting transparency in career advancement paths.
Job Posting Requirements under the Law
Employers must provide the following information in any posting for new jobs or transfer opportunities that it advertises externally or internally:
- The hourly wage or salary of the position, or a range of the hourly wage or salary;
- A general description of the benefits; and
- A description of any other compensation programs beyond traditional wages that employees may be eligible for.
A pay range should clearly state both the starting and ending points. For example, list wages as “$25 to $35 per hour” rather than “up to $35 per hour” or “$70,000 per year and up.”
Job postings must provide a general description of benefits, avoiding vague terms like “great benefits” or “health insurance and more.”
Promotional Opportunity Requirements under the Law
Employers must make reasonable efforts to inform all current employees in relevant departments about promotion opportunities. This applies whether the opportunities are advertised internally or through external channels like online ads, postings, or printed materials. However, promotions based on years of experience or performance are exempt from these notification requirements.
Filing Complaints and Available Resources
Employees who believe their employers are not complying with the new law can file complaints with the New Jersey Department of Labor (NJDOL). The NJDOL provides resources and guidance to assist employees in understanding their rights under this legislation. Employers are encouraged to familiarize themselves with the requirements to ensure compliance and avoid potential penalties.