New Jersey has enacted legislation that will require greater transparency in pay and promotional opportunities. The law (Senate Bill 2310/Assembly Bill 4151) takes effect June 1, 2025.
The details
Covered Employers
Under the law, a covered employer is one with 10 or more employees over 20 calendar weeks and who does business, employs individuals, or takes applications for employment within New Jersey. The definition of covered employer also includes job placement and referral agencies and other employment agencies.
Job Posting Requirements
Beginning June 1, 2025, in each internal or external posting for a new job or transfer opportunity, a covered employer must disclose:
· The hourly wage or salary, or a range of the hourly wage or salary, and
· A general description of benefits and other compensation programs for which the employee would be eligible.
The law doesn’t prohibit an employer from increasing the wages, benefits and compensation identified in the posting when they offer an applicant employment.
Temporary Help Service Firms
The pay/benefits disclosure requirement doesn’t apply to temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety if the posting is for identifying qualified applicants for potential future job openings and not for existing job openings.
Temporary help service firms and consulting firms must provide the pay and benefit information to an applicant for temporary employment at the time of interview or hire for a specific job opening.
Notice Requirements for Promotional Opportunities
Beginning June 1, 2025, prior to making a promotion decision, covered employers must make reasonable efforts to announce, post, or otherwise make known to all current employees in the affected department(s) of the employer’s business promotional opportunities that are advertised internally or externally.
The law defines promotion as a change in job title and an increase in compensation.
Any promotion for a current employee that is awarded based on years of experience or performance isn’t subject to the notification requirement above. The law also doesn’t prohibit an employer from making a promotion on an emergency basis because of an unforeseen event.
Next steps
New Jersey employers should review policies and procedures to ensure compliance with the law. Anyone involved in the hiring process should also receive training on the law.
https://www.njleg.state.nj.us/bill-search/2024/S2310/bill-text?f=S2500&n=2310_R1