New Jersey has joined a growing number of states enacting pay transparency laws. The New Jersey Pay and Benefit Transparency Act (the “NJPBTA”) is now in effect.

The NJPBTA applies to both private and public employers with 10 or more employees over 20 or more calendar weeks that do business, employ persons, or take applications for employment within New Jersey. Notably, the NJPBTA applies broadly, extending to employers based outside of New Jersey who have employees working in the state, or if the employer accepts job applications from New Jersey residents.

Under the NJPBTA, employers must disclose the following in any job posting or transfer opportunity (whether posted externally or internally):

• The hourly wage or salary of the position, or a range of the hourly wage or salary;
• A general description of benefits; and
• Any other compensation programs that the employee may be eligible for.

Distinct from other employers, temporary help service firms or consulting firms are required to provide the hourly wage/salary and description of benefits information at the time of interview or hire for a particular job opening.

The NJPBTA further requires employers to take reasonable steps to inform all current employees within the affected departments about available job promotion opportunities. This applies regardless of whether the promotions are announced internally or through external channels. However, promotions granted to current employees based on years of experience or performance are exempt from these notification requirements.

Penalties for violations of the NJPBTA include $300 for a first violation, and $600 for each subsequent violation. However, employers will not be penalized multiple times for the same non-compliant job posting if it appears across several platforms.

To ensure compliance and avoid fines, employers should review their job postings and internal processes to make sure they meet the NJPBTA’s requirements.

 *           *           *

If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.