The New Jersey Pay Transparency Law, which took effect on June 1, 2025, introduces new requirements for compensation transparency in one of the country’s most densely employed states. In a state with one of the nation’s largest number of workers, here’s what it means for employers.
Key aspects of the law include:
Covered Employers: The law applies to employers with 10 or more employees meeting specific criteria related to doing business or employing workers in New Jersey. This includes public employers and certain employment agencies.
Job Posting Requirements: To comply with the pay transparency requirements, covered employers must include compensation information in job postings, such as the hourly wage or salary range, and a general description of benefits.
Promotional Opportunity Requirements: Employers must also announce promotional opportunities to eligible employees before filling a position, with some exceptions.
Penalties for Non-Compliance: Violators may face escalating penalties for each violation.
Temporary Help Service Firms Exception: These firms have specific requirements regarding when they must provide pay and benefit information.
The purpose of this law is to:
- Promote pay equity.
- Help job seekers and current employees evaluate compensation.
Employers should prepare by:
- Reviewing and updating job postings and promotion practices.
- Updating job posting templates.
- Training relevant teams.
Considering a pay equity audit and consulting with legal counsel are options. To streamline compliance and create easy and effective compensation structures and reporting, see LaborIQ’s modern compensation software for the only tools a company needs to manage these laws and streamline personnel operations.
