A debate has emerged over new pay transparency regulations proposed by the New Jersey Department of Labor and Workforce Development (NJDOL). The proposed rules, posted on September 15, follow a pay transparency law signed by Governor Phil Murphy earlier this year.
Under the proposal, employers would be required to include a salary or hourly wage range in every job posting—whether for promotions, new jobs, or transfers—that does not exceed 60% above the minimum rate offered. For example, an advertised range of $20 to $34 per hour or $100,000 to $165,000 annually would violate the rule.
Business groups have raised concerns about this provision. The New Jersey Business & Industry Association (NJBIA) and other organizations previously lobbied against such specific requirements being included in the law. They succeeded in having those provisions excluded from the final version.
“This was a sticking point in our deliberations with the bill sponsors,” said NJBIA Chief Government Affairs Officer Christopher Emigholz. “It’s one of the reasons we went from opposing the pay transparency bill to being able to take a neutral position on the final version of it. We felt there was significant positive movement and a level of fairness there.
“Now, we do agree there is a spirit of the law that should be adhered to. You shouldn’t be so vague to say your salary range is between $1 and $1 million. But it is concerning that NJDOL appears to be trying to change the negotiated law so specifically.
“We believe it is exceeding its statutory authority as it relates to this provision,” Emigholz said.
According to NJBIA, several employers from different industries have already contacted them with concerns about how these regulations go beyond what was established by law.
“There are several reasons why this is problematic,” Emigholz explained. “Foremost is the strictness of the range limits that is likely to restrict an employer’s ability to negotiate in a competitive labor market.
“On the competition front, businesses may be concerned that publicly revealing a specific salary or pay range could provide an advantage to competitors who can use the information to lure away talent.
Additionally, Emigholz said, there could be “a company culture issue here in that the limits of the pay range could lead to others in the company thinking that their or their colleagues’ salary is too low or too high.”
The NJDOL will accept written comments on its proposal until November 14.
