In September 2024, the New Jersey General Assembly passed (S2310/A4151). The bill—which was already passed by the New Jersey Senate earlier this year—is now set to head to the desk of Governor Phil Murphy for a final signature. S2310/A4151 is a workplace pay transparency law. If passed, the law would create new pay transparency requirements for: 1) Job listings, and 2) Promotions for covered businesses and organizations. Here, our New Jersey employment law attorney explains the key things to know about the pay transparency proposal.
Background: Pay Inequities a Persistent Problem
Unfortunately, pay inequities remain a stubborn problem in New Jersey and throughout the United States. Despite progress in awareness and regulatory efforts, disparities in compensation still exist based on gender, race, and other legally protected immutable characteristics factors. Employees should not be paid less based on stereotypes about their gender, race, or other factors. Unfair wage discrepancy not only affects individual workers but also perpetuates broader inequalities.
Pay transparency laws are designed, in part, to help address unjust pay disparities. They are not, by themselves, a comprehensive solution—but they can help to shed light on pay. Knowledge is power for workers seeking better compensation. Broadly speaking, pay transparency regulations require employers to disclose salary ranges in job postings, during hiring processes, or even across existing roles within the company. By making compensation more visible, the law aims to empower workers.
An Overview of New Jersey S2310/A4151 (Pay Transparency Law)
Both chambers of the New Jersey state legislature have not passed S2310/A4151 into law. Assuming the bill becomes law after being signed by the Governor—it passed with a veto-proof majority through the General Assembly and the State Senate—the law would create new pay transparency requirements. Here is an overview of key points to know:
- Required Disclosures: As drafted, the New Jersey Pay Transparency Law mandates that employers disclose the salary range, hourly wage, or both in job postings. The law also requires a general description of benefits and other compensation programs available to the prospective employee. The requirement ensures that all job advertisements provide clear and accessible compensation details to potential applicants. However, it does not restrict employers from offering higher compensation at the time of job offer than initially posted.
- Covered Employers: Which employers are covered by New Jersey’s proposed pay transparency law? If signed by the Governor, the law will apply to all employers in New Jersey who have 10 or more employees over a period of 20 calendar weeks within a given year. It includes those operating within the state, engaging in business, or taking employment applications. Staffing agencies may be covered by the law.
- Notice of Promotion Opportunities: S2310/A4151 applies not just to new positions, but also to promotional opportunities being offered to employees within a business or organization. Employers are required to make “reasonable efforts” to announce or make known any promotion opportunities that are available. With that being said, certain promotions based on seniority may not require pay transparency notices.
- Enforcement of the Law: Non-compliance with these requirements can result in civil penalties, with fines up to $300 for a first violation and $600 for subsequent violations. Each instance of non-compliance related to a specific job posting or promotion is treated as a single violation. As drafted, S2310/A4151 does not include a private right of action. In other words, an individual employee will not be able to sue an employer for a violation of the law.
What to Know About Pay Discrimination Claims in New Jersey
Are you a job applicant or employee in New Jersey who was subject to pay discrimination? You may have a claim against an employer. Pay transparency regulations can be helpful—but they are not the tool for employees to get compensation for their damages. Here are key points to know about pay discrimination claims in New Jersey:
- The Law: In the context of pay discrimination, employees in New Jersey are protected by a wide range of state and federal regulations. Depending on the specific case, you may have a claim under the federal Equal Pay Act, Title VII of the Civil Rights Act, the New Jersey Law Against Discrimination (NJLAD), or the Diane B. Allen New Jersey Equal Pay Act.
- Proving ‘Substantially Similar Work’ is Key: Under the Diane B. Allen New Jersey Equal Pay Act, the term ‘substantially similar work’ is the foundation of any pay discrimination case. It refers to work that is nearly equivalent but not necessarily identical in terms of responsibilities, effort, and skills. In other words, a claim may be made based on comparisons between positions that are not exactly the same but are similar in their actual job requirements and duties.
- Remedies for Employees: If your pay discrimination claim is successful, the remedies can include back pay for up to six years—which is a longer period than the federal standard of two years (three in cases of willful violations). New Jersey also allows treble damages for affected workers. You can seek damages for up to three times the amount of back pay due.
Why Rely On New Jersey Employment Attorney Charles Z. Schalk in a Pay Discrimination Case
Pay discrimination claims are complicated. As an employee, you should not be denied fair and equitable pay based on a protected characteristic, such as race, gender, or LGBTQ status. Charles Z. Schalk is a member of the National Employment Lawyers Association and a strong advocate for the rights of workers. With the skills and experience to handle the full range of pay disparity claims, Attorney Schalk has a proven record of client testimonials and employment law case results.
- Get Help From Our New Jersey Employment Lawyer Today
Charles Z. Schalk is an experienced employment law attorney. With a commitment to personalized attention, Attorney Schalk has the legal expertise workers can trust. If you have any questions or concerns about pay discrimination, we can help. Call us at (908) 526-0707 or contact us online for a completely confidential consultation. We represent employees throughout New Jersey.