New Jersey’s pay transparency law is already in effect, but now the Department of Labor has released proposed rules that begin to answer the practical questions employers have been asking.
If you’re wondering what this means for your business or your remote hiring practices, keep reading.
Do these draft rules apply to my company?
If you hire employees in New Jersey, the answer is most likely yes. The draft rules, if made final in their present form, apply to employers that have 10 or more employees during any 20-calendar-week period if the company:
- does business in New Jersey,
- employs people in New Jersey, or
- takes applications for roles located in New Jersey, including remote roles tied to New Jersey.
Even if your headquarters is in another state, the law still may apply if the job is performed fully or partially in New Jersey.
What needs to be in my job postings now?
The draft rules clarify what “pay transparency” means.
Under these rules, postings must include:
- either a specific salary or hourly rate, or a defined pay range, and
- a general description of benefits and other compensation.
Employers often ask whether they can say, “$17 per hour and up.”
Under the draft rules, they cannot. The job posting must include both a minimum and a maximum number.
How tight do pay ranges need to be?
The draft rules specify that the maximum salary in a range cannot be more than 60 percent higher than the minimum. In other words, New Jersey wants posted ranges to reflect realistic expectations, not broad ranges that hide the true pay.
Do we have to announce all internal promotions?
You must make “reasonable efforts” to notify eligible employees of most internal promotions.
The draft rules define “reasonable efforts” as:
- posting the opportunity in a place where employees can see it, and
- posting it on your intranet if you have one.
Promotions based on seniority or performance, or those made during emergencies, are exempt.
Are we responsible for postings on job boards?
This is a common concern.
Here’s the simple answer:
- If a third-party site scrapes job ads automatically, without your involvement, you are not responsible for any errors.
- But if you provide the content, approve the content, or work with a site or recruiter to create the ad, you are responsible for making sure it follows the rules.
Agreements with recruiters and job boards matter now more than ever.
How do the rules affect recruitment firms?
Temporary help and recruitment firms do not have to disclose pay and benefits when advertising potential future roles. But once they are interviewing or hiring for a specific job, they must provide pay and benefit information.
What are the penalties?
The draft rules follow the statute:
- up to $300.00 for a first violation, and
- up to $600.00 for each subsequent violation.
Each job posting or promotional opportunity counts as one violation, no matter how many sites it appears on.
What should employers do before the rules become final?
Many employers feel stuck here, unsure whether to wait or prepare now. These proposed rules signal where New Jersey is headed: tighter pay ranges, clearer postings, and more transparency in the hiring process.
This is where Rubin Employment Law supports employers.
Through our Peace of Mind Package, we help companies update their job-posting templates, review their internal notice practices, and prepare for the direction the law is moving, so you don’t have to navigate every detail on your own.
Need help preparing for the pay transparency rules?
Call us at 973.787.8442 or email us at legaladmin@alixrubinlaw.com.
This blog is for informational purposes only. It is not offered as legal advice, nor is it intended to create an attorney-client relationship with any reader. Consult with competent local employment counsel to determine how the matters addressed here may affect you.
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