On June 1, 2025, New Jersey officially joined 13 other states participating in the wage transparency trend. Governor Phil Murphy signed the New Jersey Pay and Benefit Transparency Act (NJPBTA or the Act) this past November, requiring employers with 10 or more employees in the state to disclose compensation and benefits information on postings for new “job postings and transfer opportunities” in New Jersey. The particulars of the Act have been discussed in greater depth in a previous blog post.
For applicable employers, any postings for New Jersey positions published on or after June 1, 2025, must include:
- the hourly wage or salary, or a range of the hourly wage or salary for the position; and
- a general description of benefits and other compensation programs for which the employee would be eligible.
Employers are also required to make reasonable efforts to advertise internally for promotional and transfer opportunities that are not based on years of experience or performance. This aspect of the Act does not apply to promotions made “on an emergent basis due to an unforeseen event.”
The law does not provide employees or applicants with the ability to pursue a private cause of action. Instead, enforcement rests with the Commissioner of the New Jersey Department of Labor and Workforce Development (NJDOL), who may seek civil penalties up to $300 for first violations and up to $600 for each subsequent violation.
We recommend employers take the following measures to remain compliant:
Provide reasonable compensation ranges
Neither the Act nor current guidance from the NJDOL expressly define how narrow an advertised wage range must be. However, ranges so wide as to undermine the clear intention of the law are more likely to raise red flags. Impacted employers should make a good faith effort to define an anticipated floor and ceiling in its posted wage or salary range.
Importantly, the Act expressly permits employers to offer higher “wages, benefits, and compensation” than those identified in the posting. Given the limited guidance, however, any deviation from the posted wage or salary range should be viewed cautiously for potential risk.
Disclose available benefits
The Act requires employers to provide a “general description of benefits and other compensation programs in which an employee would be eligible within the employee’s first 12 months of employment.” While the Act is silent on what constitutes “benefits and other compensation programs,” employers can anticipate the disclosure of programs like their 401(k), medical benefits, family and parental leave, paid time off, and similar offerings.
Train responsible personnel
Employers should ensure that all personnel responsible for their New Jersey job postings —including internal human resources and recruiting professionals, as well as external recruiters or staffing agencies—are aware of and complying with these new legal requirements. This may require training, communicating with relevant stakeholders, and tracking third-party postings for compliance.
Consider conducting a compensation audit
Employers should consider analyzing the compensation of their current employees and think through how a new role fits within an overall compensation structure when defining its wage or salary range. Audits also help identify potential morale or pay equity concerns that may currently exist or arise after a new position is posted.
Reed Smith’s labor and employment team is available to answer any questions you may have about these changes.