Attention NJ Employers: New Pay Transparency Rule Is Here – What You Need to Know
New Jersey continues to move toward greater workplace equity, and starting June 1, 2025, employers must comply with the state’s new pay transparency requirements under N.J.S.A. 34:6B-23.
This new law applies to employers with 10 or more employees (for at least 20 calendar weeks in the current or preceding year), and it affects both public job postings and internal transfer or promotion notices.
This is more than a posting update — it requires a thoughtful review of compensation strategy, job architecture, and internal equity practices.
What MUST be included in every job posting or internal promotion notice
New Jersey requires employers to disclose certain information at the time a job is advertised, whether internally or externally. This includes:
A good-faith salary or wage range
Employers must clearly state either a single salary figure or a defined low-to-high compensation range. Vague language such as “up to $35/hr,” “$70K+,” “depending on experience,” or “competitive pay” does not comply. Employers are expected to disclose what they honestly anticipate paying at the time of posting, even if the final offer may vary based on candidate qualifications. This requirement may necessitate standardizing pay bands, documenting compensation criteria, and ensuring consistency across departments.
A general description of benefits
Job postings must provide a clear sense of the benefits structure. While not every detail is required, the description should include:
- Health, dental, and vision insurance
- Retirement plans
- Paid time off (vacation, sick leave, personal days)
- Family or medical leave
- Wellness benefits and other employer-sponsored perks
A summary of other compensation programs
If the role includes additional forms of compensation—such as commissions, bonuses, profit-sharing, incentive pay, stipends, or shift differentials—these must be disclosed. Employers should explain:
- What forms of additional pay exist
- Whether they are discretionary or structured
- How employees may become eligible
Promotion Opportunity Requirements
The law also requires employers to make reasonable efforts to notify current employees of promotion opportunities within their department before a promotion decision is finalized. This ensures:
- Internal candidates can express interest
- Promotion processes remain transparent
- Employers avoid claims of favoritism or discriminatory advancement practices
These requirements have major implications for internal communication, job evaluation processes, and recordkeeping.
Penalties for Non-Compliance
While financial penalties may seem modest, they can accumulate quickly:
- Up to $300 for a first violation
- Up to $600 for each subsequent violation
Non-compliance can also expose employers to:
- Wage and hour investigations
- Discrimination claims
- Reputational damage in recruiting markets
- Job posting takedowns or third-party platform flags
For employers with frequent hiring cycles, these risks can multiply rapidly.
Where to Find Guidance
Employers seeking reliable information can start with official resources:
- NJ Department of Labor (NJDOL) – Pay Transparency Guidance: MyWorkRights.NJ.gov
At Chilla Business Counsel, we help employers navigate these sensitive issues—reviewing policies, providing training, and advising leadership—so your workplace stays safe, professional, and productive.
We should talk chillalegal.com [email protected] 973.660.1095