New Jersey’s Pay Transparency Law: What Employers Need to Know Before June 1, 2025
If you have employees in New Jersey or are planning to hire there, there’s a new law taking effect on June 1, 2025, that you need to have on your radar.
New Jersey joins a growing list of states in the U.S. that are requiring more transparency around pay. Here’s what’s changing, and how to get ready:
Who Is Affected?
The new law affects any business with 10 or more employees over 20 calendar weeks (across your entire organization, not just in New Jersey) that has roles based in New Jersey or posts jobs that someone in New Jersey could fill. This includes fully remote roles open to NJ-based candidates, even if your company is headquartered elsewhere.
What’s Required?
Starting June 1, any job posting for a position based in, or that could be based in, New Jersey must include:
- The hourly wage or salary (or range of hourly wage or salary the employer would consider)
- A general description of benefits or any other compensation (such as bonuses or commissions) the employee would be eligible for within their first year.
This applies to both external and internal job postings—and yes, it includes remote roles that could be performed in New Jersey.
Even if you’ve already been sharing pay ranges voluntarily (and we hope you are!), this law makes it a requirement.
Promotions Are Included Too!
One of the unique requirements of this law revolves around promotion opportunities. If you’re posting a job internally or externally that could be considered a promotion opportunity (meaning a new title and pay increase), you’ll need to take “reasonable steps” to make that opportunity known to all current employees in affected departments before making a decision as to who will be selected for the open position. In short, if there’s an internal move that others might be eligible for, transparency is expected.
There are some caveats to this, though:
- Any promotion for a current employee that is awarded on the basis of years of experience or performance would not be subject to this requirement.
- If a promotion is carried out on an emergent basis due to an unforeseen event (such as the sudden departure of an employee), the employer may not be subject to this requirement.
Non-Compliance Can Cost You
Penalties for non-compliance aren’t cheap- they can be up to $300 for a first violation and $600 for each violation after that.
But beyond avoiding fines, embracing pay transparency is quickly becoming a best practice that many companies are adopting to build trust with candidates and employees. Being open about pay sends a strong message that you value fairness and equity, which helps attract and retain top talent. Adopting this trend now, if you aren’t already doing it, will help put your business ahead of the curve and set you up as an employer people want to work for.
If You Need Some Help
If you’re not sure how to apply this to your business or want a second set of eyes on your job postings or pay practices, our team of knowledgeable HR Business Partners can help you. Whether you’re a New Jersey employer or just have one or two remote employees there, let’s make sure you’re compliant, clear, and confident by the time June 1 rolls around.
