New Jersey's Pay Transparency Law Poised for 2025 Rollout

Post Updated: December 17, 2024:

New Jersey's Pay Transparency Law Takes Effect June 2025

New Jersey has joined the growing list of states advancing pay transparency with Governor Phil Murphy signing Senate Bill 2310 into law effective June 1, 2025. This law will require employers (including consulting firms, job placement, referral, and employment agencies) with at least 10 employees over 20 calendar weeks to disclose salary ranges and general benefits in job postings, whether internal or external.

The law also requires employers make reasonable efforts to announce opportunities for promotion to all current employees in the affected department prior to making a promotion decision. Promotions based on employee tenure are not required to be posted. Businesses operating or accepting job applications in New Jersey will be impacted even if they have no employees physically located in the state. This broad application aims to enhance pay transparency for both new hires and promotional opportunities. While businesses are allowed to increase compensation when extending a job offer, they must first provide an accurate wage range and benefits overview. 

Penalties for non-compliance start at $300 for a first violation and increase to $600 for subsequent violations. Enforcement will fall under the New Jersey Department of Labor and Workforce Development, and employees or job applicants cannot bring private lawsuits under the law. 

OutSolve's Take

The New Jersey state pay transparency law (S2310) will coexist with more stringent local regulations, such as Jersey City's Ordinance 22-045. While the state law requires salary ranges and benefits disclosures in job postings for employers with 10 or more employees, Jersey City's ordinance applies to businesses with five or more employees and mandates the inclusion of both minimum and maximum pay for all job postings, including those for independent contractors. Employers operating in cities with stricter local laws must comply with both state and local requirements, navigating overlapping obligations.

To prepare, employers should begin reviewing and documenting pay ranges for all job classifications to ensure compliance with both state and local transparency requirements

OutSolve has created Navigating Pay Transparency Laws: A Comprehensive Guide for Employers which will help you learn more about pay transparency. We also offer proactive compensation solutions to support your organizational needs.