On November 18, 2024, New Jersey Governor Phil Murphy signed into law Senate Bill 2310 (“S2310"), which requires employers to disclose compensation and benefits information in employment listings and promotional opportunities. The law will go into effect on June 1, 2025. New Jersey joins a growing list of states and cities requiring pay transparency by employers.
Covered Employers
S2310 defines “employer” as “any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within this State, including the State, any county or municipality, or any instrumentality thereof.” Job placement agencies, referral agencies and other employment agencies are included in the definition if they meet the preceding requirements.
Notice Requirements
S2310 requires employers to disclose the hourly wage or salary range and a general description of benefits and other compensation programs an applicant would be eligible to receive within the first twelve months of employment. However, S2310 does not prohibit an employer from increasing the wages, benefits, and compensation identified in the job opening posting at the time of making an offer for employment to an applicant.
Temporary help service firms and consulting firms registered with the Division of Consumer Affairs in the Department of Law and Public Safety will also be required to provide the same pay and benefits information to an applicant for temporary employment at the time of interview of hire for a specific job opening. However, temporary help service firms and consulting firms will not be required to provide such information on job postings that are posted to identify qualified applicants for potential future job openings.
S2310 also requires covered employers to “make reasonable efforts to announce, post, or otherwise make known” opportunities for promotions that are advertised internally or externally to all current employees in the affected department(s) prior to making any promotion decision. A promotion is broadly defined as any “change in job title and an increase in compensation.” Employers will not be subject to this notice requirement if the promotion is awarded based on years of experience or performance without advertisement. S2310 also does not prohibit employers from making a promotion decision on an “emergent basis due to an unforeseen event.”
Penalties
Any employer who violates this law will be subject to a civil penalty in an amount not to exceed $300 for the first violation and $600 for each subsequent violation, which will 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, transfer or promotion opportunity.
Notably, S2310 does not provide for a private right of action.
Employers should prepare to ensure compliance with these requirements. Riker Danzig’s Labor and Employment Group attorneys are available to answer any questions regarding issues raised in this Alert.
