New Jersey’s New Pay Transparency Law: What Employers Need to Know

New Jersey has officially joined the ranks of states like California, Colorado, and Washington by passing a pay transparency law that reshapes how job postings must be handled.

Signed into law by Governor Murphy on November 18, 2024, and set to take effect on June 1, 2025, the new law requires most employers to disclose the hourly wage or salary and a general description of benefits and other compensation programs in every job opening.

If your business employs ten or more people in New Jersey, this applies to you. Keep reading to understand what’s changing, what’s expected, and how to ensure compliance without turning your hiring process upside down.

Understanding the New Jersey Pay Transparency Law

Over the past few years, pay transparency laws have been picking up serious steam. Since 2019, states across the country have taken aim at wage inequality, beginning with Colorado’s landmark Equal Pay for Equal Work Act, which took effect in 2021.

The idea was simple but powerful: make salary ranges visible from the start so job seekers, especially women and minorities, don’t walk into a negotiation with blinders on. That one change helped set a national tone.

Fast forward to New Jersey. On November 18, 2024, Governor Murphy signed into law a bill that puts the Garden State in lockstep with those early movers. The New Jersey pay transparency law comes into effect on June 1, 2025, and it’s going to change the way job postings are handled.

If you’re a business with ten or more employees, the law applies to you, and not just for new hires, but for internal transfer opportunities and promotional opportunities too.

Here are the key provisions you should know:

• Who must comply
  
  If your business has 10 or more employees for at least 20 calendar weeks in a year, the New Jersey pay transparency law applies to you. And it doesn’t matter if you’re a startup, a regional branch, or a growing consulting firm. If you’re doing business in New Jersey, hiring in New Jersey, or even just accepting employment applications from people in New Jersey, you’re in the scope. The law doesn’t clarify whether all employees must be located in New Jersey, but if you’re hiring for roles that can be performed in New Jersey or accepting applications from New Jersey residents, it’s safest to assume you’re covered
• Job posting requirements
  If you're posting a job internally or externally, you’re now required to disclose pay. That includes the hourly wage or salary (or a range if you're not ready to commit to a number), and a general description of the benefits and compensation programs that come with the position.The rule applies across the board: from promotional opportunities to transfer opportunities to new jobs. You’re still allowed to offer more than what you posted. But that baseline pay-and-benefit info has to be public from the start.
• Promotion opportunity notifications
  You might have the perfect person in mind for that open role, but under the pay transparency act, you’ve got to slow down and spread the word first. The law says you need to make reasonable efforts to announce, post, or otherwise make known the opportunity to everyone in the affected department. The law expects you to make reasonable efforts to notify all eligible employees in the affected department about the promotion. However, if the opportunity arises from an unforeseen or urgent circumstance that makes prior notice impracticable, that may constitute an exception.
• Exceptions for certain firms
  Temporary help service firms and consulting firms registered with the Division of Consumer Affairs get a narrow exception under the New Jersey pay transparency law. If you’re advertising for potential future job openings, you’re not required to include the hourly wage or salary or a general description of compensation programs in the listing.

But once that turns into a specific job opening, when an applicant is interviewed or hired, that information becomes mandatory. So the exemption gives some breathing room, but only up to a point.

Penalties and Enforcement

There’s no private right of action right now, so employees can’t file lawsuits if your job posting doesn’t include the hourly wage or salary or a general description of benefits.

But that doesn’t mean you're in the clear.

Enforcement falls to the Department of Labor and Workforce Development, and fines start at $300 for your first violation. Miss it again, and you’re looking at $600 per ad. A single non-compliant job posting counts as one violation, even if it's plastered across LinkedIn, Indeed, and your company's careers page. In other words, if the same ad is posted in three places, that’s one violation, not three.

So if you’re posting, post it right.

Mistakes to Avoid Under the New Law

With the new law just around the corner, a few small missteps could cost more than you think.

• Posting vague job ads
  Let’s start with the most common slip-up: a job posting that sounds polished but says very little. If your listing uses language like “competitive salary and benefits” without backing it up with an hourly wage or salary range and a general description of what’s actually included in your compensation programs, it’s non-compliant. And that one oversight could trigger a civil penalty under the New Jersey pay transparency law.
• Relying on external recruiters
  Handing off your job postings to a recruiter doesn’t mean you’ve handed off the responsibility. Whether it’s an employment agency, a referral agency, or a larger third-party agency, if they post a listing on your behalf and it skips the hourly wage or salary or required pay and benefit information, your business is still liable.
• Assuming internal moves don’t count
  Internal transfers and promotional opportunities are covered by the same pay transparency requirements as external hires. If you're reshuffling roles without making a clear, documented announcement, complete with pay and benefit information, you could be out of compliance without realizing it.

How to Get Ahead of the Curve

You don’t need to overhaul your whole hiring process, but a few smart changes now can save you stress (and money) later.

• Audit your pay ranges before you post them
• Train HR and managers on how to talk about pay range disclosures
• Clean up internal promotion policies, especially around who gets notified
• Update job posting templates to include a salary range and benefits summary section

Final Word

The New Jersey pay transparency act is about bringing clarity to a process that’s often murky. Done right, it helps you attract qualified applicants, reduce friction, and build a stronger relationship with your workforce. The sooner you align with the new law, the more control you have over the transition.

Are you wondering about any of the issues mentioned above? Please email us at info@wilkinsonlawllc.com or call (732) 410-7595 for assistance.

At Wilkinson Law, we give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®

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