Pay secrecy ends in New Jersey as transparency law takes effect this Sunday

💲 NJ's Pay Transparency Law takes effect on June 1

💲 Employers must disclose salary ranges in job postings

💲 They also must notify current employees of promotional opportunities

New Jersey’s Pay and Benefit Transparency Act, which Gov. Phil Murphy signed into law in November, goes into effect on Sunday, June 1.

The Pay and Benefit Transpratency law explained

The law, which exists in 13 states and Washington, D.C., requires certain employers to disclose salary ranges in job postings and, importantly, provide current employees with notifications of promotional opportunities, Labor Commissioner Robert Asaro-Angelo said.

What this does for both employees and employers is to make a fairer and transparent marketplace for jobs in New Jersey, he said.

For employees, the law empowers them to make informed decisions about job opportunities and evaluate whether their current compensation is competitive within the industry, he said.

For employers, it builds trust with potential and current employees by clearly outlining compensation packages, fostering a more open and equitable work environment for all, Asaro-Angelo said.

“When you’re looking for a job, whether it’s an online posting or something else, and you don’t know what it’s going to pay you, how do you know if you’re going to put the effort to apply for that job. When you’re interviewing, it’s a weird power dynamic not to know what the benefits, rights, and wages you’ll be getting as an employee,” he said.

The Pay and Benefit Transparency Act applies to any employer operating in New Jersey with 10 or more employees over 20 calendar weeks per year.

Promotion Opportunity Notifications

Employers must make reasonable efforts to notify all current employees of any promotional opportunity before making a decision. These can be internal or external. Notification can be done through internal postings, announcements, or digital/print advertising.

Asaro-Angelo said promotions based on seniority and performance do not require prior notice.

Job Posting Pay and Benefits Disclosure

All postings for new jobs or transfer opportunities must include the hourly wage or salary, or a range of pay, a general description of benefits, and other compensation programs available to the role.

Penalties for Non-Compliance

Any employer who does not comply with this law will be subject to up to $300 for a first violation, and $600 for each subsequent violation.

That being said about penalties, “in New Jersey, an overwhelming majority of employers are compliant with labor laws,” Asaro-Angelo said.

For more information about the Pay and Benefit Transparency Law, visit here.

Report a correction 👈 | 👉 Contact our newsroom