New Jersey introduces pay transparency law
New Jersey has introduced updated pay transparency laws, governing how employers must advertise compensation packages when hiring, as reported by Forbes on June 6, 2025.
The recent New Jersey Pay and Benefit Transparency Act (NJPBTA) requires most employers to disclose salary ranges, benefits, and compensation programs in job advertisements and internal postings. The law is part of a growing US trend to close wage gaps and standardize fair hiring practices.
The NJPBTA applies to employers with at least 10 employees working in New Jersey for 20 or more calendar weeks. Covered companies now must include the following details in job postings:
- The hourly wage or salary, or a defined pay range.
- A general description of offered benefits.
- Details of additional compensation such as commissions, bonuses, or incentive pay.
Importantly, salary ranges must now include both a minimum and maximum figure. Terms like “up to $60,000” or “starting at $20/hour” no longer meet legal requirements. Similarly, generic phrases such as “competitive benefits” are prohibited under the new law.
The new disclosure rules apply to all forms of job postings, including job boards, social media, company websites, print advertisements, and internal promotions.
The NJPBTA builds on several existing New Jersey labor laws focused on pay equity. The Diane B. Allen Equal Pay Act 2018 already prohibits wage discrimination based on certain characteristics under New Jersey’s Law Against Discrimination. Additionally, New Jersey banned salary history inquiries in 2020, preventing companies from basing compensation offers on a candidate’s prior earnings.
What are the Implications for Employers?
Companies that fail to comply face financial penalties imposed by the New Jersey Department of Labor and Workforce Development (NJDOL). First-time violations may result in fines up to $300, while subsequent violations increase to $600 per offense.
Out-of-state employers are also affected. Any company recruiting New Jersey residents, even for fully remote roles, must follow NJPBTA guidelines if the position is open to New Jersey applicants.
Temporary staffing agencies and consulting firms face slightly different obligations. While they are not required to list wage and benefit information in general postings for speculative roles, they must provide full compensation details at the interview or offer stage for specific job openings.
As a result, employers must now review and update employment resources, train recruiters and managers, review external recruiter materials, and establish internal procedures to ensure full compliance. Companies may also face growing internal pressure from existing employees as salary ranges become more transparent.
While the law allows for pay differences based on legitimate business factors like experience or education, companies will need to document and justify any disparities carefully.
Developing Labor Law Trends
New Jersey’s move is part of a larger national trend toward imposed salary transparency mandated by US state labor laws. Similar laws have already taken effect in states like California, Colorado, New York, and Washington.
The patchwork of state regulations can cause multi-state employers confusion when determining which laws apply to different departments. While some see this as a regulatory burden, others view it as an opportunity to build greater trust and equity in their organizations.
Related Content:
US Minimum Wage: A Quick and Easy Guide
Remote Work and Payroll: 10 Challenges and Solutions for US Employers
10 Tips to Streamline your Payroll in the US
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