New Jersey Legislature Passes Pay Transparency Bill
New Jersey will soon join the growing list of states with pay transparency laws. New Jersey’s legislature passed the bill (S2310/A4151), on September 28, 2024. The measure was unanimously approved by the Senate in June. The bill now goes to Governor Phil Murphy for consideration. If enacted, the bill would require transparency as it relates to both compensation in employment listings as well as promotional opportunities.
Covered Employers
The pay transparency and promotional opportunity notice requirements would apply to employers with 10 or more employees over 20 calendar weeks who do business, employ persons, or take applications for employment within New Jersey. Coverage would also extend to job placement and referral agencies and employment agencies.
Required Job Posting Pay Disclosures
The bill would require that covered employers include in each posting for new jobs and transfer opportunities the hourly wage or salary, or the range of the hourly wage or salary, for the role, as well as a general description of benefits and other compensation programs for which the employee hired into the role would be eligible. The bill further provides, however, that “[n]othing [in the bill] shall be construed to prohibit an employer from increasing the wages, benefits, and compensation identified in the job opening posting at the time of making an offer for employment to an applicant.”
Temporary help service firms and consulting firms would also be required to provide the same pay and benefit information to an applicant for temporary employment at the time of interview or hire for a specific job opening. However, such firms would not be required to include any such information in postings “that are posted for the purpose of identifying qualified applicants for potential future job openings and not for existing job openings.”
Promotional Opportunity Notice Requirement
Covered employers also would be required to “make reasonable efforts to announce, post, or otherwise make known” opportunities for promotion that are advertised either externally or internally within the employer to all current employees in the affected department(s) prior to making a promotion decision. For this purpose, external postings would include internet-based ads, postings, printed brochures, or other similar advertisements. The notice requirement would not apply to promotions for current employees that are based on years of experience or performance. The bill also would not prohibit an employer from making a promotion “on an emergent basis due to an unforeseen event.”
Remedies and Enforcement
Employers would face fines of up to $300 for the first violation and $600 for each subsequent violation of the proposed law. A single violation would be if an employer failed to comply with all postings of a job opening, transfer opportunity, or promotional opportunity. This would apply regardless of how many postings were made. A private right of action is not available.
Takeaways
If signed by Governor Murphy, the bill would go into effect six months after signing. New Jersey employers need to keep up with the bill’s progress and be prepared for any changes that may come in regards to job posting requirements.
