New Jersey Enacts Pay Transparency Law: Employers Must Disclose Salary Ranges and Benefits in Job Postings

by Jocelyn McNamara and Rrita Osmani

On June 1, 2025, a new pay and benefits transparency law created by the New Jersey Department of Labor and Workforce Development took effect, requiring certain employers to comply with enumerated job posting requirements. The goal of the new wage transparency law is to increase workplace transparency and support the New Jersey workforce and employee rights through mandatory salary and benefit disclosures.

Which New Jersey employers must comply?

Employers that must comply with the new law are those that employs 10 or more employees over the course of 20 calendar weeks that does business, employs people and takes applications for employment within the state must comply, regardless of whether they are a private or public employer. This means that government entities that meet these criteria must also comply.

What are the job posting requirements these employers must comply with?

• Hourly wage or salary, or a range of the hourly wage or salary
• General descriptions of benefits
• Other compensation programs

What requirements are imposed for employers to comply with regarding current employees?

The requirements imposed for employers to comply with regarding current employees are that they must make reasonable efforts to notify current employees of promotional opportunities within the company.

Are there any exceptions to the new law?

Yes, there are exceptions to the new law. Promotions of current employees that are awarded on the basis of experience or performance are not required to comply with the new wage transparency requirements. Additionally, temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety do not need to provide compensation details on postings created to identify qualified applicants for potential future jobs. They need only provide this information if the posting is for an existing job opening.

What penalties do employers face for noncompliance?

The penalties employers face for noncompliance are $300 for their first violation, and $600 penalties for each subsequent violation. A failure to comply for one promotional opportunity counts as a single violation, even if that promotional opportunity is posted on several forums.

Are there states with similarly progressive wage transparency and benefits disclosure laws?

Yes, there are states with similarly progressive wage transparency and benefits disclosure laws. Colorado, California, Washington, New York, and Hawaii have all passed laws similar to the New Jersey law in recent years. Colorado’s law requires all employers to comply, even if they only have one employee. California and Washington’s laws require employers with 15 or more employees to comply. New York’s law lowers the minimum number of employees to 4, and adds an additional protection against retaliation for discussing compensation. Hawaii’s law is a bit more broad, raising the minimum number of employees to 50 to require compliance.

What are the potential benefits of this type of legislation?

In passing laws like the New Jersey disclosure law, states hope to reduce wage gaps, improve employee wellbeing, promote trust within organizations, and potentially create gains in employee retention and recruitment.

What steps can New Jersey employers take to comply with this new legislation?

Employers should first confirm whether or not they fall within the definition of an employer provided by the statute. If they determine that they do, they should ensure that they provide accurate and realistic salary ranges when creating job postings, and that they are open about new opportunities for pre-existing employees within their organization.