New Jersey’s 2025 Pay Transparency Update

Starting June 1, 2025, New Jersey employers will be required to include pay and benefits information in all job postings. The new New Jersey Pay Transparency Act aims to increase fairness in compensation—but it also brings new compliance risks for employers who don’t update their posting practices. In this post, we’ll break down:

• Which employers are affected
  
  
• What needs to be disclosed
  
  
• What counts as a violation
  
  
• And how to stay compliant before the law takes effect
  
  

Overview of the NJ Pay Transparency Act

The Act requires employers to include specific compensation-related details in job postings. This is part of a broader national trend toward pay transparency intended to:

• Reduce gender and racial wage gaps
  
  
• Provide clearer expectations for job seekers
  
  
• Promote fair competition in hiring
  
  

Does This Law Apply to Your Business?

The New Jersey Pay Transparency Act applies to employers with 10 or more employees who meet the 20-calendar-week threshold per year. You’re likely covered if you:

• Employ individuals in New Jersey
  
  
• Do business in the state
  
  
• Accept job applications from New Jersey residents
  
  

Temporary staffing firms and consulting firms do not need to include pay and benefits in job postings—but they must provide that information after a job offer has been extended.

What Are the New Job Posting Requirements?

As of June 1, 2025, all internal and external job postings must include:

• The salary or hourly pay range for the position
  
  
• A general description of benefits and compensation
  
  

These rules apply to:

• New job openings
  
  
• Internal promotions
  
  
• Transfer opportunities
  
  

There are two limited exceptions:

• Unforeseen events: If a promotion must happen immediately due to urgent circumstances. However, the law does not define what qualifies as “unforeseen.”
  
  
• Merit-based promotions: If the promotion is based strictly on seniority or performance and doesn’t involve a job posting.
  
  

What Should Employers Do Now?

To prepare for the go-live date, here are key steps New Jersey employers should take:

Audit Existing Job Postings

 Review current internal and external job ads. Ensure each includes:

• A salary range or hourly rate
  
  
• A general summary of compensation and benefits
  
  

Standardize Compensation Ranges

Create documented pay ranges for every job title within your company. This will help ensure consistency across postings and departments.

Update Recruiters and Staffing Partners

If you use third-party agencies, inform them of your new disclosure requirements so they can align with your company’s compliance standards.

Notify Employees of Promotion Opportunities

Another provision of the law requires that employers make reasonable efforts to inform employees of promotions. Consider revising your workflows so that compensation and promotion opportunities are communicated clearly and early.

What Are the Penalties for Noncompliance?

The law will be enforced by the New Jersey Commissioner of Labor and Workforce Development. Penalties include:

• $300 fine for the first violation
  
  
• $600 fine for each additional violation
  
  

Importantly, each job opportunity counts as a separate violation—but posting the same job on multiple platforms does not trigger multiple fines.

New Jersey Joins a National Trend

When the law takes effect, New Jersey will become the 14th U.S. jurisdiction with a salary transparency requirement, joining states like California, Colorado, and New York, as well as Washington, D.C.

If your company hires in multiple states, it’s smart to begin standardizing job posting practices now to ensure compliance across the board.

A federal pay transparency law has been introduced in Congress, but it’s unclear whether it will pass.

Final Thoughts: Get Ahead of the Deadline

The June 1, 2025, deadline will be here before you know it. Now is the time to review your job postings, promotion procedures, and pay documentation.

Need help navigating New Jersey’s new pay transparency law—or similar laws in other states?

Contact Exact Payroll to make compliance simple: exactpayroll.com/contact-us