On June 1, 2025, New Jersey’s Pay and Benefit Transparency Act (“the Act”) took effect, ushering in a new era of openness around pay and benefits for job applicants and employees. This law is part of a growing national movement toward pay transparency, but it introduces several unique requirements and has a broad reach. Employers operating in or hiring employees from New Jersey must act quickly to ensure compliance.

Key provisions of the Act include:

• Broad Definition of Employer. The Act applies to any employer that has 10 or more employees over 20 or more calendar weeks and: (a) conducts business in New Jersey; (b) employs individuals within New Jersey; or (c) takes applications for employment within New Jersey even if the employer neither conducts business in New Jersey nor employs individuals in the state. On its face, the Act applies even if a company does not have any active employees in the state of New Jersey. The Act covers private businesses, public entities, and non-profits, as well as job placement and referral agencies and other employment agencies.
   
• Transparent Job Postings. All job postings—whether for a new hire, transfer, or promotion—must now include:
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    • The exact hourly wage or salary, or a defined range (with both a starting and ending point)—vague statements such as “up to $35 per hour” or “$70,000 and above” are not allowed; and
    • A general description of benefits and other compensation programs for which the employee would be eligible (g., medical insurance, vacation, retirement benefits, parental leave, bonuses, stock, or profit-sharing options). Statements such as “great benefits offered” or “health insurance and more” are not sufficient.
       
• Internal Promotional Notifications. Employers must make “reasonable efforts” to notify all current employees in the “affected department(s)” about promotional opportunities before making a promotion decision. This applies whether the opportunity is advertised internally or externally. A promotion is defined as a change in job title and an increase in compensation. However, there are exceptions for: (a) promotions based solely on seniority or performance, which are exempt from the notification requirement; and (b) promotions made on an emergent basis due to an unforeseen event.
   
• Enforcement and Penalties. The New Jersey Department of Labor and Workforce Development (the “NJDOL”) is responsible for enforcement of the Act. There is no private right of action, and penalties for non-compliance include up to $300 for the first violation and up to $600 for each subsequent violation. Each non-compliant job posting or failure to notify about a promotional opportunity is considered a separate violation, regardless of the number of forums used for the posting. The NJDOL will likely publish administrative regulations further interpreting the Act, but no such guidance is available to date. The lack of various terms leaves some uncertainty as to how the Act will be implemented. For example, the Act does not define an “employee” or “affected department.” Blank Rome will continue to monitor for updates.
   
• Anti-Retaliation Protections. Employers are prohibited from retaliating against employees who discuss or inquire about compensation information.

New Jersey’s Pay and Benefit Transparency Act represents a significant shift in employment practices, with a strong focus on fairness and openness. Taking proactive steps now to update your job postings, promotion processes, and compensation disclosures will help your organization avoid penalties and demonstrate a commitment to workplace equity. Engaging with HR professionals and legal counsel will help your organization implement these new requirements effectively and ensure ongoing compliance with New Jersey’s pay transparency law.