To ensure compliance by June 1, 2025, employers must update job postings, establish systems to notify current employees about opportunities for promotions, and provide guidance to human resource professionals on the new disclosure requirements.

Employers in the Garden State must begin complying with the New Jersey Pay Transparency Act by June 1, 2025. As reported in detail in our earlier Alert, the new law requires employers to make certain disclosures when hiring, transferring or promoting workers in New Jersey.

Key Highlights of the Act

As of June 1, 2025, employers with 10 or more employees over a period of 20 calendar weeks who conduct business, employ workers or accept applications in New Jersey must:

1. Disclose the following information in all internal and external postings for new jobs, transfers and promotion opportunities:
   1. The hourly wage or salary, or a range of the hourly wage or salary; and
   2. A general description of benefits and other compensation programs for which an employee in the position would be eligible.
2. Make reasonable efforts to announce, post or otherwise make known to existing employees any opportunities for promotion in their department that are advertised internally or externally.

What This Means for New Jersey Employers

To ensure compliance by June 1, 2025, employers must update job postings, establish systems to notify current employees about opportunities for promotions, and provide guidance to human resource professionals on the new disclosure requirements. Employers may also want to consider conducting a privileged audit with the aid of legal counsel to determine compensation ranges for various positions and address pay differentials that require correction, particularly given the broad reach of the Diane B. Allen Equal Pay Act.

For More Information

If you have any questions about this Alert, please contact Kathleen O'Malley, Danielle M. Dwyer, any of the attorneys in our Employment, Labor, Benefits and Immigration Practice Group or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.