New Jersey Passes Wage Transparency Law That Also Requires Posting of Promotion Opportunities

New Jersey may join the growing list of states that require employers to include a range of the hourly wage or salary in postings for new jobs or transfer opportunities if Governor Murphy signs Senate Bill 2310, which was passed by the New Jersey Legislature on September 26, 2024. Governor Murphy has 45 days to sign the law, which, if signed, would become effective seven months later.

The bill is similar in many respects to the wage transparency laws passed in New York state and New York City. One key difference is that, unlike the New York laws, the New Jersey law would also require employers to take "reasonable" steps to "announce, post, or otherwise make known" to current employees any opportunities for promotion.

Who Is Covered?

The New Jersey law would apply to any employer who has 10 or more employees over a 20 calendar week period who "does business, employs persons, or takes applications for employment" within New Jersey. Given this wording, the law may be interpreted to apply to employers who are located outside of New Jersey, if they have at least 10 employees and do any business, have any employees, or accept any applications in New Jersey. Unions and job placement agencies would also be covered.

What Is Required?

The New Jersey law would require employers to include in any internal or external job posting the hourly wage or salary, or a range of the hourly wage or salary, for a new job, transfer, or promotional opportunity. Employers must also include a "general description of benefits and other compensation programs for which the employee would be eligible."

An employer may ultimately fill the position at a higher rate than the one listed in the posting as the law allows employers to increase the wages, benefits, and compensation "at the time of making an offer for employment to an applicant."

Employers must also make "reasonable efforts," before making a promotion decision, to "announce, post, or otherwise make known opportunities for promotion" to notify current employees "in the effected department" of a promotion opportunity. A promotion is defined as "a change in job title and an increase in compensation." The statute does not describe what constitutes a "reasonable effort."

No posting or announcement is required, however, when an employer promotes a current employee on the basis of years of experience or performance. An employer also does not need to post a promotion opportunity where the promotion is made "on an emergent basis due to an unforeseen event."

Penalties

Employers who fail to comply with the law's requirements would be subject to civil penalties of up to $300 for a first violation, and $600 for each subsequent violation, which would be paid to the New Jersey Commissioner of Labor and Workforce Development. An employer's failure to comply with the law's provisions for a particular job opening, transfer, or promotion opportunity will be considered one violation, regardless of the number of postings that list, or forums that advertise, that job opening or transfer or promotion opportunity.

Notably, the law does not appear to create a private right of action.

Local Laws

Employers in Jersey City who have five or more employees in Jersey City (including independent contractors) must also comply with Ordinance 22-045, which requires employers to include a minimum and maximum compensation rate for all postings for jobs, transfers, and promotions located in Jersey City.

Next Steps

If Governor Murphy signs the proposed law, it will go into effect seven months later. Employers in New Jersey can begin to prepare by reviewing their current compensation ranges to assess whether to make any changes to attract new candidates or retain current employees.

We will continue to monitor for further developments and will provide new information when it becomes available.