NJ Employers Required to Provide Compensation and Benefits Disclosures

Last month, New Jersey’s Pay and Benefit Transparency Act (NJPBTA) officially took effect, placing new compensation disclosure criteria on employers in the state, and providing jobseekers access to important information that may impact their employment decisions.

The Act applies to any person, company, corporation, firm, labor organization, government body or association that has 10 or more employees during 20 or more calendar weeks and which conducts business, employs people or takes applications for employment within New Jersey.

Covered employers must now disclose in their job postings the hourly wage or salary for the posted positions, or a defined range, and general descriptions of benefits and other compensation programs, such as bonuses, commissions or incentive pay. Importantly, the Act applies to job postings in any format, including job search websites, print advertisements, company newsletters, emails and social media/networking platforms.

Additionally, employers must make “reasonable efforts” to inform all current employees in “affected departments” of promotion opportunities. However, promotions for current employees which are awarded based on years of experience or performance are not subject to the Act’s notice requirements.

Failure to make necessary disclosures may result in penalties from NJ’s Department of Labor amounting to $300 for a first offence, and $600 for each subsequent violation.

We will continue to monitor the legislation and provide updates on relevant developments.