As of June 1, 2025, New Jersey employers with 10 or more employees over 20 or more calendar weeks must comply with the New Jersey Pay and Benefit Transparency Act (“NJPBTA”). Covered employers include those doing business, employing individuals, or taking applications for employment within the state.
What Does the Law Require?
Under the NJPBTA, employers are required to disclose the hourly wage or salary (or a range) for an advertised position and a general description of the benefits and other compensation programs the applicant is eligible for within the first year of their employment. If the covered employer is using a salary or hourly wage range, the range must have a minimum and maximum amount. Simply stating the position pays up to $XX per hour is considered insufficient for the purposes of the NJPBTA.
Additionally, if the employer advertises for a position that may be considered a promotion for an existing employee, “reasonable efforts” must be made to inform all current employees (within the impacted department) of the promotion opportunity prior to determining who will be selected for the position. This provision is applicable to all instances in which the employer is advertising the position, regardless of whether the advertisement is being made internally or externally.
There is a limited exception for temporary help service firms and consulting firms who are registered with the Division of Consumer Affairs. Specifically, these organizations are not required to provide the hourly wage or salary (or range) or the general description of benefits and other compensation programs on job postings seeking applicants for potential future job openings. Instead, the employer is required to provide the information to an applicant at the time of interview or hire. Note: the exception is not applicable to job postings for existing openings.
Are There Penalties for Noncompliance?
Covered employers found to be violating the NJPBTA risk being subject to a civil penalty of $300 for the first violation and $600 for each subsequent violation. Each failure to announce, post, or make known an opportunity for promotion or failure to include the pay and benefit information in a particular posting constitutes one violation regardless of the number of postings related to that specific job opening.
Employer Next Steps:
Covered employers need to be cognizant of these rules and, if they are not already, be making efforts to come into compliance with the NJPBTA. Consider the following next steps to ensure compliance:
- Update job descriptions and pay ranges, as well as the processes and procedures for drafting and advertising open positions, and informing current employees, to ensure the regulations are applied consistently for all current and future openings.
- Review job postings, both internal and external, to confirm the required information is included. If job postings do not currently address the NJPBTA requirements, covered employers should immediately make necessary updates.
- Consider conducting pay equity and HR practice audits and train HR and recruitment staff on new requirements.
- Continue to monitor legislative and regulatory updates. Several states in addition to New Jersey have enacted pay transparency regulations, so it is crucial for multi-state employers to review their practices and compare them to the applicable regulations in the states in which the employer operates.
The New Jersey Department of Labor has created a resource page for employers that includes FAQs and other helpful information, which can be found here.
