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Doing business in New Jersey? You should know about the New Jersey Pay and Benefits Transparency Act (NJPBTA)
Ranked tenth among U.S. states by GDP and flanked by the even larger economies of New York and Pennsylvania, New Jersey boasts a sizable labor market. To support workers and job seekers by increasing pay transparency, the state passed the Pay and Benefit Transparency Act (NJPBTA) in September of 2024. The NJPBTA went into effect on June 1st, 2025.
This is the first statewide pay transparency law in New Jersey, although since 2022, Jersey City has had its own pay transparency ordinance. (Jersey City-based employers with five or more employees must have pay ranges and benefit descriptions in job listings.)
The new pay transparency legislation follows a pay equity law passed in 2018, which protects employees from pay discrimination based on protected characteristics like race, gender, religion, sexual orientation, and disability.
Which employers does the New Jersey pay transparency law (NJPBTA) apply to?
The text of the NJPBTA states that it applies to “employers with 10 or more employees over 20 calendar weeks that do business, employ workers, or take applications for public or private employment in New Jersey.”
Legal observers have noted that this delineates a large pool of employers. For example, the law applies to organizations that do business in New Jersey, even if they do not have any New Jersey-based employees. It also applies to organizations in other states that are open to hiring New Jersey residents.
Key requirements of the New Jersey pay transparency law
The NJPBTA has two key requirements.
1. Make current employees aware of job openings. Before an employer makes a promotion decision, they are required to make “reasonable efforts” to “announce, post, or otherwise make known opportunities for promotion … to all current employees in the affected department.” This is the case whether the open job is advertised externally, internally, or both. There is an exemption for promotion decisions based on performance or experience.
2. Include pay/salary amounts or ranges in job postings. Postings for new jobs and internal transfer opportunities must include the specific hourly pay, salary, or hourly/salary range. They must also include applicable benefits and other compensation. The legislation notes that employers may offer applicants higher wages or benefits than what is listed in the job posting.
The legislation also notes that temporary agencies do not have to provide the required pay/benefits information in job postings. However, they do need to provide this information during the interview or hiring process.
What enforcement mechanisms are in place? What are the penalties for non-compliance with the NJPBTA?
The NJPBTA is enforced by the state’s Department of Labor and Workforce Development (NJDOL). Employers found to be in violation will face penalties of up to $300 for the first violation and $600 for subsequent violations.
Next steps for employers
Consider whether the NJPBTA applies to your organization. As we’ve discussed, this law does apply to some businesses that do not or do not currently have any New Jersey-based employees.
Evaluate your process for posting open jobs. Does it involve notifying current employees in a way that is compliant with the new legislation?
Make sure your processes for developing and posting job announcements include calculating and integrating specific pay ranges. The NJPBTA requires either a specific pay amount or a range, not just a starting amount. This makes it important to develop clear pay structures that will allow your organization to provide that level of clarity to job-seekers.
Provide training and support to human resources professionals and hiring managers. These employees should be aware of the legislation, how it interacts with your organization’s current recruitment and hiring processes, and if applicable, any changes you make to those processes.
How can PayAnalytics by beqom help employers meet the New Jersey Pay and Benefits Transparency Act requirements?
Reexamining your organization’s pay scale and pay ranges—whether it’s to comply with pay transparency legislation like the NJBPTA or for any other reason—may seem like a daunting task. But user-friendly workforce analytics software like PayAnalytics by beqom gives you precise insight into your current salary structure. That way, you can make sure that your compensation strategy is data-driven, consistent, and in line with what your organization values. And that lets you set pay ranges that truly make sense for current employees, job seekers, and your organization’s bottom line.
PayAnalytics by beqom also supports ongoing pay equity and transparency within your organization. Our software solution helps you close any demographic pay gaps, including gender pay gaps, in the most cost-effective way. And the Compensation Assistant feature helps make sure that once your pay gaps are closed, they stay closed.
Our compensation experts are happy to talk with you about how PayAnalytics by beqom can streamline your compliance with the NJPBTA. Contact us or book a demo anytime. And to help maintain your organization’s compliance with local pay transparency legislation, check out our full guide to U.S. pay transparency laws by state.
