New Jersey’s New Compensation Disclosure Law: What Employers Need to Know

On November 18, 2024, Governor Murphy signed a law which will require New Jersey employers with 10 or more employees to disclose certain compensation benefit information in job advertisements.

What Does the Law Require?

This new law requires covered employers to disclose in each job posting, “the hourly wage or salary, or range of hourly wage or salary, and a listing of benefits and other compensation programs for which the employee would be eligible within the employee’s first 12 months of employment.” This applies to “promotions, new jobs, and transfer opportunities” that are advertised internally, externally, or both. The law does not prohibit the employer from increasing the wages, benefits, or compensation set forth in the advertisement at the time the employer offers the job to an internal or external candidate. Rather, the advertised compensation and benefits serve as a floor as to what the employer may offer and pay candidates and employees who accept the advertised positions.

The law also requires that employers “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, flyers, or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotional decision.” Promotions are defined as “a change in job title and an increase in compensation.” The new law does not require an internal announcement if the promotion of a current employee is based on ‘years of experience or performance.” The law also creates an exception for emergent, unforeseen events requiring an internal promotion without advertising it.

Who Does the Law Apply To?

The law applies to any “person, company, corporation, firm, labor organization, or association, which has 10 or more employees over 20 calendar weeks and does business within [New Jersey].” Job placement and referral agencies are expressly covered by this new law. The law does not apply to temporary help services firms and consulting firms registered with the Division of Consumer Affairs.

What Are the Penalties/Ramifications for Non-enforcement?

Unlike most employment statutes, like the New Jersey Law Against Discrimination, this new law does not contain a private right to sue or a private cause of action. Rather, the Commissioner of Labor and Workforce Development may enforce the provisions of this disclosure law. The Commission of Labor and Workforce Development has authority to seek civil penalties in an amount no greater than $600, for each subsequent violation.

When Will This Law Go into Effect?

June 1, 2025.