New Jersey Joins the List of States Requiring Pay Transparency

The latest state to require pay transparency in postings is New Jersey. Governor Phil Murphy has signed into law a new statute and the law will become effective on June 1, 2025.

Specifically, the law requires all employers that have at least 10 employees consistently over 20 calendar weeks and that do business, employ persons, or take applications for employment within the New Jersey to disclose the hourly wage or salary. Additionally the employer must list a general description of all benefits and other compensation programs the applicant would be eligible for within the first 12 months of their employment.

If an employer decides to advertise (either internally or externally) for a position which could be considered a promotion for an existing employee, the employer must make “reasonable efforts” to announce, post, or otherwise make known the promotion opportunity to all current employees in the affected department(s) before making a decision as to who will be selected for the open position, effectively ending the practice of “shoulder-tap-promotions” for those covered by this new law.

Temp agencies and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety are omitted from the disclosure requirements.