A new state law mandating pay transparency in job postings and promotional opportunities was signed into law this week, with implementation set for June 1, 2025. The legislation targets employers with ten or more employees who conduct business, employ people, or accept job applications within New Jersey. It affects corporations, businesses, labor organizations, associations, employment agencies, and job placement or referral services.
The bill, known as S-2310/A-4151 (Moriarty/Danielsen), was signed by Governor Phil Murphy on Monday. It mandates that job postings must include the salary or hourly wage (or a range) for a position or transfer opportunity. Additionally, it requires a general description of benefits and other compensation programs available to the employee.
Assemblyman Joe Danielsen (D-17) stated: “Far too often, employees are uncertain or unaware of opportunities for growth and added compensation and this bill is designed to change that.” He emphasized that the bill aims to ensure fair chances at advancement by making job promotions well publicized.
Senator Paul Moriarty (D-4), one of the Senate sponsors of the legislation, noted that eight states already have similar laws in place. “Job seekers should have a complete picture of salary and benefits before they apply for a position,” Moriarty said.
The New Jersey Business & Industry Association (NJBIA) collaborated with the bill's sponsors to introduce amendments making it more feasible for employers. These amendments allow promotions based on tenure or performance without triggering notification requirements. They also increased the minimum number of employees required for coverage under the law to ten and removed the "private right of action" clause which could have led to civil lawsuits over alleged violations.
Employers are permitted to increase wages, benefits, and compensation from what is listed in the job posting when extending an offer. Temporary help service firms and consulting firms must provide pay information during interviews or hiring but are exempt from including such details in postings meant for potential future openings rather than current ones.
The law obliges covered employers to make reasonable efforts to inform all current employees about promotional opportunities before making promotion decisions. Exceptions exist for promotions based on experience or performance or those made urgently due to unforeseen events.
Non-compliance with the law will result in civil penalties not exceeding $300 for a first violation and $600 for subsequent violations. The state Department of Labor and Workforce Development will enforce these regulations.
NJBIA members seeking guidance on how this new law will affect their operations after its effective date can reach out to NJBIA Vice President of Government Affairs Elissa Frank.
