The New Jersey Pay and Benefit Transparency Act (NJPBTA), effective June 1, 2025, requires employers to disclose salary information and benefit details in job postings, both internal and external job postings.
NJBPTA follows the trend of many pay transparency provisions in state statutes, including California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New York, Rhode Island, Vermont and Washington.
One aspect of the Act that is slightly different than many pay transparency enactments is the requirement to provide a description of benefits offered. At this point, there are no definitions on what is to be included within the description of benefits. There are similar provisions in a general way in other states, including Colorado and Washington. The list typically would include benefits such as medical insurance, vacation time, retirement benefits, parental leave and bonuses, as well as stock and profit-sharing options.
A feature of the New Jersey law that is not particularly common in other state pay transparency laws is the requirement that employers under the Act must “make reasonable efforts to announce, post, or otherwise make known opportunities for promotion that are advertised internally within the employer or externally on internet-based advertisements, postings, printed flyers, or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision.” The law defines a promotion as “a change in job title and an increase in compensation.” There is an exemption for promotions that involve a current employee “on the basis of experience or performance.” In addition, there is an exemption which permits unadvertised promotions “due to an unforeseen event.” In pertinent part, the Act states: “Any promotion for a current employee awarded on the basis of ... experience or performance shall not be subject to the notification requirements established… Nothing … shall be construed to prohibit an employer from making a promotion on an emergent basis due to an unforeseen event.”
The New Jersey Department of Labor and Workforce Development enforces the New Jersey law. There is no private cause of action under the statute as it currently is written. There are penalties, however, which can range from $300 to $600.
As might be expected, the law provides a strong anti-retaliation provision. This is significant in that the law may encourage more discussions about pay aspects. In communications regarding pay, care should be taken so that the nature of the discussion does not raise concerns about potential retaliatory conduct.
