Starting June 1, New Jersey employers will face new requirements under the 2024 Pay Transparency Law. This legislation mandates that employers disclose hourly wages, salaries, or pay ranges in job postings. Additionally, they must provide a description of benefits and other compensation for which employees are eligible. These requirements apply to both internal and external promotional and transfer opportunities.
Employers can still offer higher wages, benefits, and compensation than initially advertised when making employment offers. For internal promotions, employers must make reasonable efforts to inform all workers in affected departments about the opportunity. However, promotions can still be awarded based on experience or emergent needs.
The law applies to entities with 10 or more employees over 20 calendar weeks looking to advertise open positions within New Jersey. This includes businesses, firms, labor organizations, associations, referral agencies, and employment agencies. Temporary help services or consulting firms posting jobs for potential future openings are exempt from including salary and benefit information.
Non-compliance with the law could result in civil penalties: $300 for the first violation and $600 for subsequent violations. The New Jersey Department of Labor and Workforce Development is authorized to enforce these penalties. Notably, the law does not allow job applicants or employees to sue employers for violations.
This new regulation builds upon the Diane B. Allen Equal Pay Act enacted in 2018. The Equal Pay Act prohibits discrimination against employees exercising their rights under the law and prevents employers from asking job applicants about their salary history.
