New Jersey: Latest State to Enact Pay Transparency
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APPLIES TO All Employers with Employees in NJ |
EFFECTIVE Pending |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion:
SB 2310 has been sent to Governor Murphy for its signature, and, when signed, will make New Jersey the latest state to require employers to disclose wage or salary ranges in each job posting or advertisement. The requirements of the bill are very similar to other pay transparency legislation seen across the country and are summarized below.
Applicability. The bill would apply to “any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within this state.” The headcount includes all employees and not just those that are located in New Jersey.
Job Postings. The range of the hourly wage or salary for the position and a general description of benefits and other compensation must be included. The bill differs from other laws in one aspect. Employers can increase wages, benefits, and other compensation from the job posting at the time of making an initial offer to the employee.
Promotions. Promotions, defined as a change in job title or an increase in compensation, are also required to be made known to all current employees in the affected department. The bill requires employers to take “reasonable efforts” to do this but does not explain what that means.
Local Laws. Jurisdictions with local pay transparency laws, like Jersey City, are not preempted by this bill where they are more stringent. Jersey City’s law, for example, applies to employers with five or more employees.
Penalties. Failure to comply with the requirements will subject the employer to a civil penalty of $300 for the first violation and $600 for each subsequent violation. The New Jersey Department of Labor and Workforce Development will enforce these penalties.
Governor Murphy has 45 days to sign the bill upon which employers have six months before it goes into effect to prepare to comply. Employers should also note another companion bill is pending which would require disclosure in a job posting of whether or not the posting is for an existing vacancy. Employers would have to include the time frame expected for filling the position and would have to remove the posting within two weeks after the position is filled.
Action Items
- Review the bill here.
- Prepare to review and update job postings for compliance.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase