What Happened:
New Jersey’s Pay and Benefit Transparency Act (NJPBTA) went into effect on June 1, 2025. The NJPBTA requires employers to disclose salary information and benefit details on job postings, whether internal or external. Employers should be aware that while New Jersey already has one of the most robust pay equity laws in the country, the NJPBTA adds to employers’ obligations.
What You Need to Know:
The NJPBTA defines “Covered Employers” broadly: “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.”
Notably, there is no requirement for Covered Employers to be physically located in New Jersey, and the law applies equally to job placement, referral, and employment agencies. If an employer is located in or does business in New Jersey and has 10 or more employees over 20 calendar weeks, the NJPBTA applies.
Covered Employers must now disclose in their job postings the hourly wage or salary for the posted positions, or a defined range, and general descriptions of benefits and other compensation programs, such as bonuses, commissions, or incentive pay. Importantly, the Act applies to job postings in any format, including job search websites, print advertisements, company newsletters, emails, and social media/networking platforms. These Covered Employers must make “reasonable efforts” to announce, post, or otherwise make known opportunities for promotion to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision.
The New Jersey Department of Labor and Workforce Development is authorized to enforce the NJPBTA through assessment of civil penalties, which can range from $300 for the first violation to $600 for each subsequent violation.
Next Steps to Take to Comply with NJPBTA:
Businesses that are considered Covered Employers should consider taking these steps immediately:
- Identify the expected pay ranges for all positions.
- Perform a pay equity audit with the help of an attorney and be mindful of maintaining attorney-client privilege.
- Update job posting procedures, including any third-party recruiters.
- Perform training for Human Resources and Recruitment practices.
Most notably, we recommended Covered Employers to be proactive, especially in regard to a pay equity audit, which will enable employers to better understand any potential compensation variables. If an employer plans to advertise for an opening, it will be required to provide a salary range for the position. The employer should anticipate that existing employees will likely review the posting to compare their compensation with what is being advertised. Pay equity audits can also assist employers to ensure their pay practices are compliant with all federal and state equal pay laws. Engaging counsel to assist with the audit is critical to maintaining attorney-client privilege. Being proactive is the key to avoid litigation down the road.
If you need help reviewing and possibly revising your job posting procedures to ensure compliance with the NJPBTA, please contact Megan Knowlton Balne at 856.355.2936 or by email at balne@hylandlevin.com, or Beau Wilson at 856.355.2931 or by email at wilson@hylandlevin.com.
The contents of this article are for informational purposes only, and none of these materials is offered, nor should be construed, as legal advice or a legal opinion based on any specific facts or circumstances.
