In a move towards greater workplace equity, New Jersey has enacted the Pay Transparency Act, also known as Senate Bill S3170, signed into law by Governor Philip D. Murphy on November 18, 2024, and set to take effect on June 1, 2025. This legislation marks a significant step in the ongoing effort to ensure fair compensation practices. As these regulations come into force, it's crucial for New Jersey employees to understand their rights and how this Act will reshape the landscape of workplace transparency.
What is the New Jersey Pay Transparency Act?
In essence, the Act requires employers in New Jersey to disclose salary ranges and benefits information in job postings. This empowers job seekers and current employees with more information about potential earnings. It also aims to close the gender and racial pay gaps. This legislation mandates that employers with 10 or more employees over 20 calendar weeks, who conduct business, employ workers, or accept applications in New Jersey, must include specific compensation and benefits information in their job postings.
Key Points for Employees:
- Salary Range and Benefits Disclosure: Employers are required to state the hourly wage or salary, or a range thereof, along with a general description of benefits and other compensation programs for which an employee in the position would be eligible. This applies to all internal and external postings for new jobs, promotions, and transfer opportunities.
- Promotion and Transfer Opportunities: Employers must make reasonable efforts to inform all current employees in the affected department(s) about promotional opportunities before making promotion decisions. However, promotions based on years of experience or performance, and emergent promotions due to unforeseen events, are exempt from this requirement.
- Legal Protections: The act offers protections against retaliation. Employers cannot take adverse action against employees who exercise their rights under the Act.
- Enforcement and Legal Recourse: If you believe your employer is not complying with the Act, you may have legal recourse. It's essential to document any instances of non-compliance.
- Scope of Coverage: The Act applies to employers with 10 or more employees over 20 calendar weeks who do business, employ persons, or take applications for employment within New Jersey. Job placement and referral agencies, as well as other employment agencies, are also subject to these requirements. Temporary help service firms and consulting firms registered with the Division of Consumer Affairs are exempt from the pay and benefit disclosure requirements when postings are for identifying qualified applicants for potential future job openings, but not for existing job openings.
- Enforcement and Penalties: The New Jersey Commissioner of Labor and Workforce Development is responsible for enforcing the Act. Employers found in violation may face civil penalties: up to $300 for the first violation and up to $600 for each subsequent violation. Each failure to announce or post a promotional opportunity, or to include the required pay range and a general description of benefits in a job posting, constitutes a separate violation.
- Exemptions: Temporary help service firms and consulting firms registered with the Division of Consumer Affairs are exempt from the pay and benefit disclosure requirements when postings are for identifying qualified applicants for potential future job openings, but not for existing job openings. Additionally, as noted above, promotions based on years of experience or performance, and emergent promotions due to unforeseen events, are exempt from the promotion notification requirements.
- Importance of Documentation: Keep accurate records of job postings, internal communications regarding promotions and transfers, and any conversations regarding pay.
Why Does This Matter to You?
This Act provides you with increased transparency, which can lead to fairer compensation negotiations and a better understanding of your market value. If you feel you’re being underpaid, this law gives you access to information that can help you advocate for yourself.
Legal Considerations and Your Rights
The New Jersey Pay Transparency Act is a significant step towards ensuring equitable pay practices. However, interpreting and enforcing these regulations can be complex. Mark | Lavigne, LLC is here to help you understand your rights and navigate any potential legal challenges. If you suspect your employer is not adhering to the Act, it’s important to seek legal counsel to determine the best course of action.
How Mark | Lavigne, LLC Can Help
Our team at Mark | Lavigne, LLC understands the intricacies of New Jersey employment law. We can assist you with:
- Understanding your rights under the Pay Transparency Act.
- Evaluating whether your employer is in compliance.
- Pursuing legal action if necessary.
- Providing guidance on navigating workplace disputes related to pay.
If you have any questions or concerns about the New Jersey Pay Transparency Act, please don't hesitate to contact us. We're here to protect your rights and ensure fair treatment in the workplace.