On June 1, 2025, New Jersey’s statewide pay transparency law (SB 2310) takes effect. The law requires employers with 10 or more employees (over 20 calendar weeks) who operate or accept job applications in the state, including public entities such as state, county, or municipal governments to disclose pay and benefits details in job postings.
Key Provisions
- Promotion Notifications: Employers must make a reasonable effort to announce or post promotion opportunities to all relevant employees in the affected departments before making promotion decisions. Promotions based on years of experience or performance are exempt from this notification requirement. Emergency promotions due to unforeseen events are also exempt.
- Wage Transparency: For new jobs, promotions, and transfer opportunities, employers must disclose the hourly wage or salary (or a range) along with a general description of benefits and other compensation. This requirement applies to both internal and external job postings. However, temporary help services and consulting firms are exempt from listing this information for potential future openings but must provide it to applicants when hiring for specific roles.
- Penalties: Non-compliance will result in civil penalties, starting at $300 for the first violation and increasing to $600 for subsequent violations. Penalties will be enforced by the New Jersey Commissioner of Labor and Workforce Development.
Next Steps for Employers
To prepare for compliance with New Jersey’s pay transparency law, employers should take the following proactive steps to update recruiting and hiring processes:
- Review Job Posting Procedures: Assess current job advertising practices to ensure all new and transfer job postings, both internal and external, including pay and benefits information. Postings should specify an exact wage, salary, or pay range.
- Update Job Posting Templates: Standardize job descriptions and templates to include compensation details such as hourly wages, salary ranges, and descriptions of benefits (e.g., health insurance, retirement plans). Consistency will streamline compliance and reduce errors.
- Audit Current Pay Structures: Conduct a compensation audit to ensure salary ranges are competitive and fair. Regular updates to pay ranges will not only comply with the law but also improve employee retention and recruitment efforts.
- Train Hiring Managers and HR Teams: Provide training for HR and recruitment teams on the new requirements. Emphasize the importance of including pay and benefits details in postings and maintaining transparency during the hiring process.
- Utilize HR Technology: Implement or upgrade applicant tracking systems (ATS) or job posting platforms to prompt HR teams to include required salary and benefits information in job ads automatically.
- Stay Updated on the Law’s Final Provisions: Monitor any additional guidance or rulemaking issued by the state to ensure compliance with all aspects of the law.
HR Works will continue to monitor this topic and share updates as they become available.
HR Works Can Help
HR Works offers comprehensive compensation and benchmarking services. Virtual HR Helpline subscribers receive five free benchmarks each year (with the option to purchase the additional benchmarks for a fee). Current HR Works clients may contact their designated HR Consultant and Virtual Helpline subscribers can contact the helpline at hrhelp@hrwork-inc.com or 1-888-668-1271 for additional assistance. Non-HR Works clients who would like to learn more about these services and how to leverage our compliance expertise and support, may contact us at info@hrworks-inc.com or call 1-877-219-9062.
