Pay transparency is gaining traction across the United States as states continue to implement laws aimed at promoting fairness and equity in the workplace. The latest development comes from New Jersey, where Senate Bill 2310 (S2310) was signed into law. This new legislation requires employers to disclose pay ranges and benefits in job postings and promotional opportunities
Effective June 1, 2025, New Jersey will join Illinois, Massachusetts, Minnesota, and Vermont as one of the newest states to implement pay transparency laws. Employers must take proactive steps to ensure compliance with evolving state regulations.
Requirements
New Jersey’s pay transparency law applies to employers with at least ten employees over 20 calendar weeks who conduct business, employ workers, or accept applications in the state. Under the law, all job postings for new positions and internal transfers must include an hourly wage or salary—or a range. Employers must also provide a general description of benefits and compensation programs to give job seekers a clearer understanding of what to expect.
Beyond job postings, employers are also required to make reasonable efforts to notify employees about promotional opportunities before hiring decisions are made. This ensures that employees are aware of advancement options within their organization. However, promotions based solely on seniority or performance are exempt from this requirement.
Exceptions
Certain exceptions apply to temporary helping service firms and consulting firms. These businesses are not required to disclose pay ranges or benefits for speculative future openings. However, they must provide this information during interviews or at the time of hire for specific job opportunities.
Non-compliance with the law carries civil penalties of $300 for the first violation and $600 for each subsequent violation. While these fines may seem minimal, repeated violations could harm an employer’s reputation and expose them to greater legal scrutiny.
Employer Guidance
With the law’s effective date approaching, New Jersey employers should take proactive steps to review and update their hiring and promotion practices, revising job postings and descriptions and keeping HR up to date with compliance. As more states introduce similar regulations, multi-state employers must remain vigilant and adapt to varying legal requirements. By staying ahead of these changes, businesses can ensure compliance while fostering a more transparent and equitable workplace.
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At Global Investigative Services, we are your trusted ally in background screening, committed to helping you navigate pay transparency law and other evolving regulations. Our precise, timely, and comprehensive services ensure that you remain compliant and well-prepared for any changes. If you have questions or need assistance with background check practices, or navigating pay transparency requirements, please contact us.
