New Jersey Pay and Benefit Transparency Act | NJ Pay Disclosure Law | What is N.J.S.A. 34:6B-23?

Following the lead of neighboring New York and Philadelphia, New Jersey has enacted its own Pay Transparency Law, which is designed to close wage gaps and provide job seekers with essential financial data upfront. The Transparency Law, which became effective June 1, 2025, requires most New Jersey employers to disclose salary ranges in their job postings. If you have not updated hiring practices to comply with the new law, now is the time.

What Does the Law Require?

The core of the legislation is simple: transparency. The three main provisions are:

• Salary Ranges in Postings: Any advertisement for a new job, promotion, or transfer must include the hourly wage or salary range, along with a general description of benefits.
• Internal Opportunities: Employers must make "reasonable efforts" to notify current employees of internal promotion opportunities before making a hiring decision.
• No More Guesswork: These rules apply to both external job boards (like LinkedIn or Indeed) and internal company portals.

Who is Covered?

The Transparency Law applies to any employer with 10 or more employees over 20 calendar weeks who does business in New Jersey. This includes staffing agencies and recruiters acting on an employer's behalf. Notably, the law applies to any position that could be performed, at least in part, in New Jersey, which includes many remote and hybrid roles.

The Cost of Non-Compliance

Although the Transparency Law does not provide for a private right of action, the New Jersey Department of Labor can impose significant fines in its enforcement of the law:

• $300 for the first violation.
• $600 for the second violation.
• $1,000 for each subsequent violation.

Steps for Employers

To stay compliant and competitive in a tight labor market, New Jersey businesses should:

• Conduct a Pay Audit: Review your current internal pay scales to ensure the ranges you post are accurate and equitable.
• Update Templates: Standardize your job description templates to include a "Compensation & Benefits" section.
• Train Hiring Managers: Ensure your HR team understands that "competitive salary" is no longer a legal substitute for a defined range.

If you are interested in learning more about how the Pay Transparency Law impacts your business, feel free to contact me at cheyer@scura.com or call me at (973) 696-8391.