On June 1, 2025, New Jersey’s Pay and Benefit Transparency Act (NJPBTA) brought a sweeping new layer of compliance to employers operating in or recruiting for roles in the Garden State. With implications that extend beyond state lines, even Pennsylvania employers hiring into New Jersey need to take note.
Here’s what your organization should know—and do—about this significant legal update.
What the NJ Pay Transparency Law Requires
The NJPBTA mandates that covered employers disclose compensation and benefits in all job postings and promotion opportunities. Here are the key details:
Who’s Covered:
Employers with 10 or more employees across 20 calendar weeks in a year that do business, employ workers, or accept job applications in New Jersey must comply. This includes out-of-state employers, such as those in Pennsylvania, who post remote or hybrid roles targeting New Jersey candidates.
What Must Be Disclosed:
Job postings (internal and external) must now include:
- The salary or hourly wage (or range),
- A general description of benefits,
- Any other compensation for which the applicant would be eligible.
This applies not only to new jobs, but also to internal promotions and transfer opportunities. Employers are still allowed to offer pay or benefits outside the posted range—but only at the time of offer.
Internal Promotions:
Employers must make a reasonable effort to notify current employees in relevant departments about open promotion opportunities before filling the role—unless the decision is based strictly on performance or tenure.
Penalties for Non-Compliance:
- $300 fine for the first violation
- $600 for each subsequent violation
Temporary Agencies:
Temp agencies only need to disclose pay and benefit details during interviews or upon hire—not in initial job postings.
Employers in PA: Why The NJ Pay Transparency Law Matters to You
If your company is headquartered in Pennsylvania but recruits for hybrid, remote, or NJ-based roles—or accepts applications from NJ residents—your postings may fall under this law. Failing to comply could not only lead to fines but also reputational and legal risk as pay transparency becomes the norm across states.
6 Steps to Get—and Stay—Compliant
1. Audit Your Job Postings: Update all job listing templates to include salary ranges and general benefit descriptions. Don’t forget to review internal promotion communications as well.
2. Conduct a Pay Equity Review: Perform a proactive audit of pay practices to ensure compliance with both NJ law and broader pay equity requirements.
3. Train Your Hiring Team: Educate HR and recruitment teams on the new rules, how to determine appropriate pay ranges, and how to document and communicate them effectively.
4. Review Your Promotion Processes: Ensure internal opportunities are being fairly and consistently communicated to all eligible employees.
5. Consult with HR and Legal Experts: Especially for multi-state employers, working with HR and employment law counsel can help you navigate the nuances of compliance and apply best practices across your organization.
6. Monitor Trends: New Jersey isn’t alone—states like Massachusetts, Vermont, and Minnesota are also tightening pay equity and transparency rules. Employers must stay ahead of this evolving compliance landscape.
Final Thoughts
The NJPBTA is part of a growing movement toward pay transparency and equity. Whether you’re based in New Jersey or simply hiring there, the time to act is now.
At XpanseHR, we help clients build compliant, equitable compensation practices that support both talent attraction and retention. Need help updating your job postings or preparing for a pay equity audit? Let’s talk.
