New Jersey pay transparency law coming in 2025

New Jersey Gov. Phil Murphy has signed a bill that will require many employers operating in the state to include pay and benefits information in job postings beginning in June 2025. The bill makes New Jersey the 14th state to enact a pay transparency law.

S.B. 2310 will apply to any employer with 10 or more employees that does business, employs workers or takes job applications within New Jersey. Covered employers must include a pay range and general description of benefits and other compensation in any external or internal job posting.

Temporary help firms and consulting agencies are not required to include pay ranges or benefits information in postings with the purpose of identifying qualified applicants for potential future job openings. However, these firms must provide this information to applicants when they are interviewed or hired for a specific job opening.

Unlike some similar laws, the New Jersey bill does not require employers to disclose a pay range to employees for their current roles.

S.B. 2310 increases transparency not only for pay but also for internal advancement opportunities. Before making a promotion decision, employers must make reasonable efforts to inform current employees in the affected department of the opening. The law defines a promotion as a change in job title and an increase in compensation.

Promotions based on years of experience or job performance are not subject to the notification requirement, and employers may still make promotion decisions on an emergent basis due to unforeseen events.

A first violation of the law carries a civil penalty of $300, and each subsequent violation will be subject to a $600 penalty. These penalty amounts are significantly lower than those in an earlier version of the bill, which would have imposed per-violation penalties up to $10,000.

The law takes effect June 1, 2025.