Proposed Rules for NJ Pay Transparency Clarify Employer Scope + Applicability

Takeaways

• New Jersey published proposed rules on 09.15.25 to the New Jersey Pay Transparency Act that had taken effect on 06.01.25.
• The proposed rules clarify the definition of a covered employer as any person, company, corporation, firm, labor organization, or association which has at least 10 employees over 20 calendar weeks, regardless of whether those employees work inside or outside of New Jersey, and does business, employs persons, or takes applications for employment within New Jersey.
• The proposed rules have not been approved and are not yet binding. Nonetheless, they provide suggested guidelines for employers.

Related links

• Getting Clear on NJ’s Upcoming Pay Transparency Law: Terms, Requirements + Noncompliance Consequences Employers Need to Know
• Proposed rules: 57 N.J.R. 2220(a)

Article

New Jersey recently joined the growing list of states requiring employers to include the range of hourly wage or salary when advertising for open positions. The New Jersey Department of Labor (NJDOL) published proposed rules on Sept. 15, 2025, that, if approved, clarify the scope and applicability of the New Jersey Pay Transparency Act, which went into effect June 1, 2025.

Notice Requirements for New Jobs, Promotions, Transfer Opportunities

Under the proposed rules, “reasonable efforts” to notify employees of potential promotion opportunities are defined as:

1. Conspicuously posting notification of the promotional opportunity in a place(s) within the employer’s workplace(s) that is/are accessible to all employees in the department(s) of the employer to which the promotional opportunity is open; and

2. In the event the employer has an internet site or intranet site for exclusive use by its employees and to which all employees have access, posting notification of the promotional opportunity on the employer’s internet site or intranet site.

With respect to new jobs or transfer opportunities, the range of pay must include both a minimum and maximum number and a general description of benefits offered. If an employer chooses to advertise a range of hourly pay or salary, rather than a single rate of pay, such range spread must be no more than 60 percent of the minimum hourly rate of pay or minimum salary. This range is calculated by subtracting the minimum pay for the position from the maximum pay, dividing the result by the minimum pay, and multiplying that number by 100. This would not apply to salary ranges established through a collective bargaining agreement or by law, rule, or local ordinance.

Employers can only be cited for violations resulting from advertisements on third-party sites if the employer retains control over the content of the advertisement appearing on the site or expressly agreed with the third-party site to relinquish control over the advertisement’s content.

Clarified Definitions

Benefits: The proposed rules clarify that “benefits” are defined as fringe benefits, including, but not limited to:

• Health insurance
• Life insurance
• Disability insurance
• Paid time off
• Training
• Pension

Employer: Additionally, a covered “employer” is defined as any person, company, corporation, firm, labor organization, or association which has at least 10 employees over 20 calendar weeks, regardless of whether those employees work inside or outside of New Jersey, and does business, employs persons, or takes applications for employment within New Jersey.

Does business …: With respect to the “does business, employs persons, or takes applications for employment within New Jersey” portion of the definition, both the solicitation and the physical location of the prospective employment would need to occur within New Jersey to trigger the Act’s requirements.

Complaints and Penalties

Under the Act, an employer who violates the Act risks a civil penalty. According to the proposed rules, complaints alleging a violation of the Act are processed in the same manner as complaints brought under the New Jersey Wage and Hour Law.

Before a penalty can be imposed, an alleged violator must be provided written notification of the violation, the amount of the penalty, and an opportunity to request a formal hearing. Any employer’s request for a hearing must be received within 15 business days following receipt of the notice.

Requests for a hearing will be reviewed by the Division of Wage and Hour Compliance to determine whether the dispute may be resolved at an informal settlement conference. If it cannot, the case would be sent for a formal hearing, and the commissioner would make the final decision regarding violation and penalty. Appeals could be made to the Appellate Division of the New Jersey Superior Court.

Next Steps

The proposed rules have yet to be adopted and, while instructive, are not binding. Nonetheless, employers should consider taking steps now to ensure compliance, including:

• Reviewing and updating internal systems; and
• Ensuring any outside service providers comply with the law.

If you do not already have established salary ranges for all positions, you should consider implementing them.

For multistate employers, it is important to compare requirements in other jurisdictions to ensure compliance.

Proactive planning will avoid disruption to hiring needs and operations and mitigate the risk of potential business exposure should the proposed rules become effective.

Jackson Lewis attorneys can assist with any aspect of compliance and answer questions regarding the law’s provisions or applicability. For assistance, please contact your Jackson Lewis attorney.