New Rules Clarify the New Jersey Pay Transparency Law

On June 1, 2025, New Jersey’s landmark Pay Transparency Law (PTL) took effect, setting new rules for postings and compensation disclosures. The law, part of broader efforts to address wage inequality and promote fairness in the workplace, imposes significant new obligations on employers with at least five employees. The New Jersey Department of Labor and Workforce Development (NJDOL) recently released proposed regulations that give guidance for employers on compliance.

The New Jersey Pay Transparency Law requires covered employers to provide clear and specific compensation information in job postings, whether for internal promotions or external hiring. The PTL applies to postings for positions that will be performed at least in part in New Jersey or that report to a supervisor, office or worksite in the state. It aims to reduce wage gaps by ensuring that candidates are aware of pay expectations at the outset of the hiring process.

The law’s primary requirements are as follows:

• Disclosure of pay information — Job postings must state the minimum and maximum annual salary or hourly wage for the position. This range must reflect what the employer, in good faith, believes it would pay for the role at the time of posting.
• Disclosure of benefits — In addition to salary or wage information, employers must specify “a general description of benefits and other compensation.” The law covers both monetary benefits (like bonuses and commissions) and non-monetary compensation (such as healthcare, retirement plans, and paid time off).
• Promotion postings — The PTL also covers internal opportunities for advancement, requiring employers to make pay and benefits disclosures available to current employees.
• Recordkeeping and anti-retaliation — Employers must maintain records demonstrating compliance (including copies of job postings). The law includes anti-retaliation provisions prohibiting adverse actions against employees who seek to exercise their rights under the law.

The NJDOL’s proposed regulations address some open questions and ambiguities inherent in the original statutory language. The regulations make these refinements:

• Details on general description of benefits — The term “general description” is defined to include health, dental, and vision coverage, retirement benefits, paid and unpaid time off, parental leave and similar offerings. Employers must summarize these in a concise and informative manner, such as by referencing standard policy documents or handbooks.
• Pay range calculations — Employers must set good-faith minimum and maximum pay ranges. These can reflect internal pay scales or market data but must not be so broad as to frustrate the purpose of the law. Open-ended ranges (e.g., “$20 per hour and up”) are insufficient.
• Definition of covered postings — Postings through third-party platforms (LinkedIn, Indeed, etc.) are covered and employers are responsible for ensuring compliance on these channels.
• Remote work — If a position may be performed remotely but is “tied to a New Jersey worksite,” the employer must comply with disclosure requirements, even if employee resides elsewhere.
• Penalties — Violations of the law can result in civil penalties, and individuals harmed by violations may file complaints with NJDOL.

The PTL’s requirements for salary and benefits disclosure, as clarified by the proposed regulations, mean that employers need to review and revise their job posting processes to ensure full compliance. Failure to adopt compliant practices could expose employers to penalties and can trigger employees’ remedies.

The employment law attorneys at Deutsch Atkins & Kleinfeldt, P.C. in Hackensack have wide experience in helping New Jersey workers get the protections they deserve under state and federal labor laws. To schedule a confidential consultation, call 551-245-8894 or contact us online.