New Jersey employers will soon have to adjust their recruitment practices with the recent passage and enactment of Senate Bill 2310 (SB2310). On Monday, November 19, 2024, New Jersey Governor Phil Murphy signed the new legislation that will require employers to disclose compensation and benefits information on job postings.

Starting June 1, 2025, the law will require employers with 10 or more employees in the Garden State to do two things:

  1. First, Employers must disclose “the hourly wage or salary, or range of hourly wage or salary” as well as a “general description of benefits and other compensation programs for which the employee would be eligible” in every job posting. The statute expressly allows employers to increase the wages, benefits, and compensation from what was listed in the posting at the time of an offer.  The law is silent on whether the wages and benefits can be adjusted downward, suggesting that only increases from the posted amounts are permissible.
  2. Second, Employers must “make reasonable efforts” to formally post opportunities for promotion prior to making a decision. Notably, however, any promotions based on “years of experience or performance” are exempted, as well as promotions made on an emergent basis due to an unforeseen event.

This law applies to both hourly and salaried employees. The law does not apply to temporary staffing firms postings seeking to identify qualified applicants for future potential openings and not existing job postings.

Violations of the statute are subject to civil penalties of $300 for the first violation and $600 for each subsequent violation.  The bill is silent on whether an individual, like a prospective candidate, has a private right of action to sue employers for violations of this law.\

Looking forward, employers should be mindful as to the means and methods they use to recruit potential candidates for promotion or to fill job vacancies. Accordingly, employers should reassess their policies and practices before the law goes into effect starting June 1, 2025. Reed Smith’s experienced labor and employment team is available to answer any questions you may have about these changes.