New Jersey recently became the newest state to enact pay transparency legislation. On November 18, 2024, New Jersey Governor Murphy signed Bill S2310 (the “Act”) into enactment. The Act will go into effect on June 1, 2025.

The Act applies to employers – broadly defined as “any person, company, corporation, firm, labor organization or association which has 10 or more employees over 20 calendar weeks and does business, employs persons or takes applications for employment within this State, including the State, any county or municipality or any instrumentality thereof.” The Act also applies to employment agencies.

Beginning this summer, employers must incorporate two new practices under the Act. First, the Act attempts to provide notice of promotional opportunities to the employer’s existing workforce. The Act requires that employers “make reasonable efforts to announce, post or otherwise make known opportunities for promotion that are advertised internally within the employer or externally on internet based advertisements, postings, printed flyers or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision.” However, there are exceptions to the notice requirement. Promotions for current employees based on years of service or performance, or instances of emergencies, are not subject to the notice requirement.

Second, the Act requires that employers specify the compensation package offered for new job openings and transfers. Specifically, employers are required to include the hourly or salary rate, or range and general description of benefits in the job advertisements for internal and external new jobs and transfer opportunities.

Failure to comply with the Act’s requirements will lead to a summary proceeding with the Commissioner of Labor and Workforce Development. Employers found in violation of the Act are subject to civil penalties ranging from $300 for first time violations and $600 for subsequent violations. Only one violation exists despite an employer listing the opportunity for a new job, transfer or promotion on multiple forums.

In anticipation of the Act going into effect, employers should review and update their job posting policies and practices. Employers should provide training to those employees involved in the hiring process to ensure understanding of compliance with the Act. Polsinelli attorneys are available to assist with any questions that may arise in anticipation of the June 1, 2025 effective date and any questions that may arise thereafter.