New Jersey has joined the growing list of states committed to pay equity and workplace transparency. Signed into law by Governor Phil Murphy in November 2024, the New Jersey Pay and Benefits Transparency Act (NJPBTA) officially took effect on June 1, 2025. This legislation sets clear guidelines for employers in New Jersey on how they must advertise compensation and benefits in job listings.
If you’re an employer, HR professional, or business owner, understanding and complying with this new New Jersey law is essential to avoid penalties and ensure fair hiring practices.
Who Must Comply with NJPBTA
The law applies to employers with 10 or more employees over a 20-week period who conduct business, employ workers, or accept applications in New Jersey. This includes job placement, referral agencies, and other employment agencies. If your business falls under this umbrella, compliance is mandatory.
Key Job Posting Requirements
Under the NJPBTA, employers must include the following details in all internal and external job postings for new positions, transfers, and promotions:
- Compensation Details: An hourly wage or salary, or a range thereof
- Benefits Overview: A general description of all benefits and other compensation programs for which the applicant would be eligible
Employers have the flexibility to offer higher wages or additional benefits beyond what is listed in the job posting when making an employment offer to an applicant.
Promotion Notifications
Employers must make a reasonable effort to inform current employees of promotional opportunities within their department before making a promotion decision.
This requirement does not apply in the following situations:
- Promotions based on seniority or performance
- Emergency promotions due to unforeseen events
Penalties for Non-Compliance
The New Jersey Department of Labor & Workforce Development is responsible for enforcing the Pay and Benefit Transparency Act. An employer who violates the law will be subject to monetary penalties up to $300 for the first violation and $600 for each subsequent violation. Each failure to include required information in a job posting constitutes a separate violation.
Action Plan for Compliance
To ensure full compliance with the New Jersey pay transparency requirements, employers should:
Update Job Postings
Ensure that every job posting – internal or external – includes the required pay and benefits information.
Create Salary Ranges
Establish clear, documented salary ranges for all positions to facilitate compliance.
Provide Training
Educate HR and managers about NJPBTA requirements. Establish internal procedures to ensure promotional opportunities are consistently and fairly communicated to relevant employees.
Monitor Local Laws
Check for additional city or county-level pay transparency laws that may have stricter regulations.
Taking these steps now will minimize disruptions and protect your business from legal and financial risk.
LaborLawCenter Can Help Your Business Stay Compliant
Navigating workplace compliance laws can be overwhelming, but you don’t have to do it alone. LaborLawCenter offers up-to-date solutions for employers, including automated labor law poster replacement services that ensure you always meet posting requirements under new laws.
Stay compliant with evolving labor laws with LaborLawCenter – your partner in workplace labor law compliance.
