By Stephanie Horn
A new pay transparency law is in effect in New Jersey as of June 1, 2025. Senate Bill No. 2310 was introduced in the New Jersey Legislature last year and requires covered employers in New Jersey to notify current employees of opportunities before making promotion decisions. However, employers are not required to notify employees of promotions based on years of experience, performance, or emergent situations due to an unforeseen event.
Under this law, covered New Jersey employers are also required to disclose hourly wages, salary, or salary ranges, a general description of benefits, and compensation programs for which the employee would be eligible within the first 12 months of employment on internal and external job postings for new jobs, promotions, and transfer opportunities.
Covered employers include organizations with 10 or more employees over 20 calendar weeks, who conduct business or take applications for employment in New Jersey.
Violations of these requirements result in civil penalties ranging from $1,000 for the first to $5,000 for the second and $10,000 for each subsequent violation. Each failure to include the required information is considered a separate violation.
Increasing Number of Pay Transparency laws
With this law, New Jersey joins a dozen other states with pay transparency requirements. Additionally, multiple states are considering enacting similar legislation or have their own pay transparency laws scheduled to go into effect in 2025.
Visit DCI’s interactive State Legislation Map to learn more about new pay transparency laws, bias audit requirements, affirmative action requirements, and pay data reporting.
