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March 18, 2025
The Law
On September 26, 2024, the New Jersey Legislature passed Senate Bill 2310, which favors employees seeking transparent compensation and benefits and fair access to job opportunities. On November 18, 2024, Governor Murphy signed the Bill into law, with an effective date of June 1, 2025 (the “Law”).
The Details
The Law applies to any employer with ten or more employees over a 20-calendar week, who does business, employs persons, or takes applications for employment within New Jersey. It requires employers, prior to making a hiring or promotion decision, to make reasonable efforts to provide notice to all current employees in the affected department(s) of all opportunities for job promotion that either are advertised internally or externally. The Law further requires those employers to disclose the applicable compensation and description of benefits for a specific job posting.
Specifically, in each posting for new jobs or transfer opportunities, an employer is required to disclose the hourly wage or salary, or a range of the hourly wage or salary, and a general description of benefits and other compensation programs for which the employee would be eligible. Notably, the Law does not prohibit employers from increasing the wages, benefits, and compensation included in a posting when they make an employment offer to a job applicant.
The Law also applies to temporary help service and consulting firms. These firms are required to provide – at the time of an interview or hire for a particular job opening – the compensation range and benefit information to an applicant seeking temporary employment.
The Exceptions
The Law allows employers to forego the promotion notice requirements in two instances: (1) when the employer makes a promotion decision on an emergent basis due to “an unforeseen event”; or (2) when promoting a current employee on the basis of years of experience or performance.
The Penalties
Any employer who violates the Law is subject to a maximum civil penalty of $300 for the first violation, and up to $600 for each subsequent violation. With respect to the notice requirement for internal promotion opportunities, an employer’s violation of the Law for one promotion opportunity is considered one violation for all listings for that specific promotion, even if the opportunity is listed on multiple forums. With respect to the compensation and benefits disclosure requirement for external job postings or transfer opportunities, an employer’s violation of the Law for a particular job posting or transfer opportunity is considered one violation regardless of the number of postings that list, or forums that advertise, that posting or transfer opportunity.
The Law authorizes the New Jersey Department of Labor and Workforce Development to enforce these mandates and collect fines in summary proceedings against violating employers. The Law, however, does not provide for a private right of action.
The Next Steps for Employers
Prior to the Law’s June 1, 2025 effective date, New Jersey employers should ensure that all employment positions have accurate wage/salary ranges and descriptions of benefits and other compensation programs assigned to them.
With regard to notice and compensation disclosure for internal promotion and transfer opportunities, employers should construct a disclosure protocol aligned with the mandates of the Law and provide the protocol to the heads of particular departments in which the promotions or transfers will be offered.
Employers also should consult with all third party recruiters that they utilize for applicant searches to ensure the recruiters’ postings align with the employer’s and comply with the Law.
This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice. Always consult an attorney with specific legal issues.
