New Jersey passed a new law requiring employers to provide greater transparency in hiring and promotional opportunities by disclosing certain compensation and benefits information.
Employers must now disclose the hourly wage or salary (or ranges) and provide an outline of benefits and other compensation programs for which an applicant would be eligible to receive within the first 12 months of employment, if hired.
With respect to promotional opportunities, prior to making a promotional decision, employers are required to make reasonable efforts to announce or post promotional opportunities to all current employees in the affected departments. The only exception to the notification requirement is for the promotion of a current employee that is awarded on the basis of years of experience or performance. Employers are further not prohibited from making promotional decisions on an emergent basis due to unforeseen circumstances.
The law applies to employers that 1) employ 10 or more employees over 20 calendar weeks, and 2) do business, employ persons or take applications for employment within New Jersey. Penalties for violating the pay transparency law include $300 for the first violation and $600 for each subsequent violation.
Takeaway: As the law goes into effect June 1, 2025, employers have time now to begin identifying appropriate pay ranges for all positions. If you need advice, guidance or an action plan on how to be compliant with New Jersey’s pay transparency law and other employment laws, reach out to the Employment Team at Wilentz.
Tag: Employer Alert
