The New Jersey Department of Labor and Workforce Development recently issued a press release emphasizing that the state’s pay transparency officially took effect on June 1st, 2025. Employers with ten or more employees that operate in New Jersey are now required to make certain disclosures regarding pay, benefits, and other forms of compensation. Here, our New Jersey workplace discrimination attorney provides an overview of the key things to know about pay transparency requirements.
An Overview of the New Pay Transparency Requirements in New Jersey
New Jersey has been added to the list of states that have put a comprehensive pay transparency law in place. On June 1st, 2025, the New Jersey Pay and Benefit Transparency Act (NJPBTA). The law mandates that covered employers disclose compensation and benefit information in job postings and notify employees of promotional opportunities. The goal is to help promote pay equity in the workplace. Here are some key provisions of the law that employees should know about:
- Covered Employers: Businesses and organizations with 10 or more employees over 20 calendar weeks that conduct business, employ people (or accept employment applications) in New Jersey are subject to the pay transparency requirements of the law. A company is still covered even if fewer than ten of its employees are actually located in New Jersey.
- Job Posting Requirements: All internal and external job postings must include some key details about pay. To start, the posting should include the hourly wage/salary or a reasonable range. The posting should also include a general description of benefits and sufficient information on other compensation programs that the worker could benefit from.
- Notification of Opportunities for Promotion: Employers in New Jersey that are covered by the pay transparency law are also required to make reasonable efforts to inform all current employees in affected departments of promotional opportunities before making promotion decisions. There are exceptions apply for promotions based on seniority, performance, or for emergent situations.
Employers that violate the law can be subject to penalties. A first-time violation carries a maximum fine of $300. All subsequent violations carry maximum financial penalties of up to $600. However, each job posting that breaches the law is considered to be a separation violation.
Pay Transparency Laws are Tool to Fight Pay Discrimination
Unfortunately, pay discrimination, including gender pay disparities and racial pay disparities, have been a problem. Pay transparency laws—like New Jersey’s new statute—are designed to help shed light on employee compensation and close pay gaps. When salary ranges and benefits are included in job postings, applicants and employees are better equipped to identify and challenge unfair pay practices. These laws increase accountability and reduce the risk of wage discrimination.
Three Steps to Take If You Believe You Were Subject to an Illegal Pay Disparity
Your career is your livelihood. It is imperative that you are compensated fairly for your hard work. No employee in New Jersey should be paid less than a similarly-situated, similarly-qualified co-worker because of stereotypes related to a legally protected characteristic, such as sex, race, or national origin. You have the right to seek a remedy. Here are three key steps to take if you believe that you were the victim of illegal pay discrimination in New Jersey:
- Document Everything: Evidence is key to any legal claim. Pay discrimination cases are certainly no exception to the rule. With that in mind, you should document everything. Start by collecting detailed evidence of the suspected pay disparity. Evidence may include copies of job postings, offer letters, internal communications, performance reviews, and any compensation records you can access.
- Notify Your Employer: You have the right to ask for better pay/benefits. You also have the right to notify your employer in New Jersey that you believe that you have been subject to unlawful pay discrimination. The law protects you against retaliation.
- Consult With an Attorney: Pay discrimination claims are complicated. You do not have to take on the process alone. Professional support is available. A top-rated New Jersey employment lawyer can evaluate your case, explain your rights/options, and help you develop a strategy to seek justice and compensation.
Consult With Our New Jersey Pay Discrimination Attorney Today
Charles Z. Schalk is a New Jersey employment attorney with the skills and experience to take on the full range of pay discrimination cases. If you have any questions about the pay transparency law, please do not hesitate to call us at (908) 526-0707 or contact us online for a confidential initial consultation. We represent employees in pay disparity cases throughout New Jersey.