On November 18, 2024, Governor Phil Murphy signed Senate Bill 2310 into law, known as the New Jersey Pay Transparency Law. This legislation will take effect on June 1, 2025, introducing new requirements for employers concerning job postings and internal promotions.
The law targets employers with at least ten employees over a span of more than twenty calendar weeks. It encompasses private businesses, public entities, and employment agencies. Under this law, when advertising positions externally or internally, employers must disclose specific information about pay and benefits to provide applicants with a clearer understanding of compensation at the time of application.
Employers are required to make reasonable efforts to inform all eligible employees within their departments about promotional opportunities before filling positions. This measure aims to enhance transparency in advancement decisions and ensure that employees have access to information regarding open roles.
There are exceptions for promotions based on seniority or performance or those made due to emergencies. However, non-compliance may lead to civil penalties: multiple postings for the same job or promotion opportunity will be treated as one violation.
To assist employers in preparing for the implementation date of June 1, 2025, the NJ Department of Labor has published guidance online at https://www.nj.gov/labor/myworkrights/wages/pay-transparency/.
The Employers Association of New Jersey (EANJ) offers support to employers in understanding and implementing workplace compliance requirements. "EANJ supports employers in understanding and implementing workplace compliance requirements," states EANJ. They provide practical guidance, policy templates, and training to help organizations adapt. "If you have questions about how the New Jersey Pay Transparency Law applies to your business," they add, "EANJ is here to help."
EANJ is a nonprofit trade association focused on improving employer-employee relations and facilitating information exchange among employers. They clarify that they do not render legal services or opinions nor engage in practicing law.
