New Jersey to Require Pay Transparency

What happened?

On November 18, 2024, New Jersey Governor Phil Murphy signed Senate Bill 2310 (S2310) into law, requiring employers to notify affected employees of promotion opportunities and disclose certain compensation and benefits information in postings for new job openings and transfer opportunities. 

Quick Summary:

• This new law enhances New Jersey’s pay equity laws by requiring employers to disclose compensation ranges and benefits in job postings, ensuring fair compensation practices.

• It also prohibits salary history inquiries and protects employees from discussing their pay.

What are the details?

The new law will require New Jersey employers to:

• Disclosure Requirements: include compensation ranges and a general description of benefits in all job postings, but they can increase the disclosed compensation when making an offer.

• Recordkeeping: Employers are required to keep records of all job postings, including the disclosed compensation and benefits information.

• Promotion Notices: Employers must notify all eligible employees about promotional opportunities, defined as changes in job title and compensation, making reasonable efforts to inform employees before making a promotion decision, with exceptions for promotions based on years of experience or performance, and emergent promotions due to unforeseen events.

• Penalties for Noncompliance: Civil penalties up to $300 for the first violation and up to $600 for subsequent violations are enforced by the New Jersey Department of Labor, with no private right of action and enforcement through summary proceedings based on the Penalty Enforcement Law of 1999.

• Interplay with Local Laws: Employers must also comply with local pay transparency laws, such as Jersey City’s Ordinance 22-045, which requires salary ranges in job postings and imposes fines up to $2,000 for non-compliance.

Business Considerations

• Employers should ensure accurate compensation and benefits information is assigned to all job positions before the law’s effective date.

• Employers should inform third-party recruiters about the need to comply with these requirements.

Source References

• New Jersey to Require Pay Transparency (VensureHR)
• NJ S2310

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