What happened?

On September 26, 2024, the New Jersey Legislature passed SB 2310, which would require pay transparency concerning compensation with promotional opportunities and in employment listings. The bill is waiting for the governors’ signature or veto.

Quick Summary

• New Jersey Senate Bill 2310 (S2310) requires employers with 10 or more employees to disclose the compensation range in each job posting/advertisement, and a general description of benefits in job postings. It aims to enhance wage transparency and ensure fair compensation practices.

What are the details?

Key Points:

• Disclosure Requirements: Employers must include the compensation range and a general description of benefits in job postings.

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

• Promotional Opportunities: Employers must inform all eligible employees about promotional opportunities, defined as changes in job title and an increase in compensation.

• Penalties: Civil penalties will be imposed for violations, with fines up to $300 for the first violation and up to $600 for subsequent violations.

Additional Details:

• Employer Definition: An “employer” is defined as any entity with 10 or more employees over 20 weeks that does business, employs, or takes applications in New Jersey, regardless of employee location.

• Job Postings: Employers must disclose the wage range and benefits in job postings but can increase them when making an offer.

• Promotion Announcements: Employers must inform all eligible employees about promotion opportunities before deciding; promotions involve a job title change and a pay increase.

• Penalties for Noncompliance: Noncompliance can lead to fines of $300 for the first violation and $600 for subsequent ones, enforced by the New Jersey Department of Labor. Applicants and employees cannot sue for violations.

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

Business Considerations

• Employers should ensure their HR and recruiting departments, as well as any third parties used for posting positions, are informed, and prepared to comply with the new requirements.
• Employers should determine and document hourly or salary ranges for each job classification using existing or benchmarking data to establish a good-faith range of pay.
• Employers should review their compensation structures to determine accurate pay ranges for each role.
• Employers should develop procedures for maintaining records of all job postings and train hiring managers and HR personnel in these new requirements.
• Employers should pay particular attention to each job posting to ensure sufficient information is provided about anticipated compensation and benefits for each advertised position.

Source References

• NJ SB 2310

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