Pay Transparency Requirements Coming to New Jersey
On September 26, the New Jersey legislature passed a bill which, if signed, would impose pay transparency requirements on covered employers. These requirements include (1) disclosing compensation ranges and benefits for job openings and (2) making efforts to promote internal employees.
Pending the expected signature of Governor Phil Murphy, the statewide pay transparency requirements will go into effect seven months thereafter.
Employers should note that New York State has its own wage transparency law, which went into effect in September 2023, and Jersey City has a wage transparency law that went into effect in July 2022.
Covered Employers
Employers with at least 10 employees over 20 weeks who “do business, employ persons, or take applications” within New Jersey will be subject to the pay transparency requirements. While the language of the bill does not specify whether the employment must be in New Jersey to count towards this threshold, employers should expect the law to be applied broadly.
Job placement companies, temporary help service firms, and consulting firms are also considered employers under the bill when posting existing job openings.
Job Postings
Covered employers will be required to disclose compensation ranges for hourly wages or salary positions and a description of benefits on all job postings. Employers may increase compensation and benefits at their discretion when making a job offer, but may not go below the listed range.
Promotional Opportunities
Employers will also be required to make “reasonable efforts” to offer promotions to employees within the organization. The bill defines promotions as “a change in job title and an increase in compensation.”
Employers must make promotion opportunities known to all employees in eligible departments prior to making a promotion decision. There are exceptions to this requirement for promotions of current employees that are not advertised and for emergent promotions due to an unforeseen event.
Employer Penalties
Employers who violate the New Jersey Pay Transparency requirements will be subject to civil fines of up to $300 for a first offense and up to $600 for a repeat offense. These fines are payable to the New Jersey Department of Labor and Workforce Development. Individuals may not bring private claims under the law.
If you have any questions or concerns about the New Jersey or New York wage transparency laws, please contact Chaim Book at cbook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir@booklawllp.com.
