The New Jersey General Assembly has passed legislation (S.B. 2310) that would require employers to disclose pay and benefits details in job postings. This legislation aims to increase transparency in job postings, ensuring that both current employees and external applicants are informed about compensation and benefits, thus promoting fair and open employment practices. If signed by Gov. Phil Murphy, the law would take effect on the first day of the seventh month after it is signed.
The bill applies to employers with 10 or more employees (over 20 calendar weeks) who operate or take job applications in the state, including public entities such as state, county, or municipal governments. The key provisions are:
- Promotion Notifications: Employers must make a reasonable effort to announce or post promotion opportunities to all relevant employees in the affected departments before making any promotion decisions. However, 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), as well as 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 job openings but must provide it to applicants when hiring for specific roles.
- Penalties: Non-compliance results in civil penalties, starting at $300 for the first violation and increasing to $600 for each subsequent violation. The penalties will be enforced by the New Jersey Commissioner of Labor and Workforce Development.
Next Steps
To prepare for compliance with New Jersey’s proposed pay transparency law, employers can take several proactive steps to update their recruiting and hiring processes:
- Review Job Posting Procedures: Employers should assess their current job advertisement practices. Ensure that all new and transfer job postings, both internal and external, include pay and benefits information. This includes providing either an exact wage or salary or a 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 like health insurance, retirement plans, and other benefits. This consistency will help streamline compliance and reduce errors.
- Audit Current Pay Structures: Employers should conduct a compensation audit to ensure that salary ranges are competitive and fair. Regularly updating pay ranges will not only comply with the law but also help with employee retention and recruitment.
- Train Hiring Managers and HR Teams: HR and recruitment teams should be trained on the new requirements and the importance of including pay and benefit details in postings. This training should emphasize transparency and consistent communication of compensation packages during the hiring process.
- Utilize HR Technology: Implement or upgrade applicant tracking systems (ATS) or job posting platforms to automatically prompt HR teams to include required salary and benefits information in job ads.
- Stay Updated on the Law’s Final Provisions: Employers should closely monitor the bill’s progression, and any additional guidance or rulemaking issued by the state once the bill is signed into law. This will help ensure compliance with any nuances of the law.
HR Works will continue to monitor this topic and provide more information as it becomes available.
HR Works Can Help
Current HR Works’ Virtual HR Helpline subscribers have unlimited access to answers to questions about the proposed FLSA exempt salary increase, as well as other HR and employment law topics, and 24/7 access to HR Works’ attorney-reviewed online compliance resource center (Comply), which offers human resources tools, forms, and other compliance resources. Additionally, Virtual HR Helpline subscribers receive two free FLSA Assessments each year (with the option to purchase additional assessments for a fee). The HR Helpline can be reached at hrhelp@hrworks-inc.com or by calling 888-668-1271.
HR Strategic Services clients may contact their designated HR Consultant for additional guidance and assistance with these changes and/or to request FLSA Assessments.
Non-HR Works clients may contact us for HR solutions by calling toll-free at 1-877-219-9062 or visiting our website.
