On Monday, Governor Phil Murphy, signed iS2310 into law.  The new Pay Transparency Act is expected to promote fairness and reduce pay gaps in the workplace by requiring employers to disclose specific information about employee compensation.

In accordance with S2310, any person, company, corporation, firm, labor organization, or association which has ten (10) or more employees over twenty (20) calendar weeks and does business, employs persons, or takes applications for employment within the state must:

• Make a reasonable effort to announce, post, or otherwise make known to all current employees, new job or available promotion opportunities advertised internally or externally prior to filling the position.
• Disclose in each posting, either internally or externally, the hourly wage or salary, or range of salary and a general description of benefits and other compensation programs.

The new pay transparency law will take effect on June 1, 2025. While there are discrete exceptions for promotions based on years of experience or performance, or positions filled due to emergent circumstances, failure to comply could result in a fine of $300 for the first violation and $600 for subsequent violations. The Commissioner of Labor and Workforce Development will enforce the law, however there is no private right of action for employees.

With consideration to the June 1 effective date, New Jersey employers should consider reviewing their pay practices and recruitment policies; making sure those who oversee staffing and hiring are aware of the new requirements contained in the pay transparency law.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)