New Jersey’s Pay Transparency Law: What SMBs Need to Know

Quick look: The New Jersey Pay and Benefit Transparency Act is here. The law, which became effective on June 1, 2025, requires Garden State employers to share compensation details in job postings and internal promotions. Here’s what businesses need to know to comply with the mandate and how a professional employer organization (PEO) can help them achieve that.

With a goal of fostering pay equity, the New Jersey Pay and Benefit Transparency Act (NJPBTA) took effect June 1, 2025, and mandates that employers share compensation details in job postings and promotion announcements.

The new legislation makes New Jersey the latest region to join the ranks of other states and cities with similar policies. It also gives employers in the Garden State additional compliance complexities to understand and adhere to.

Below, discover which organizations are affected, what the law requires employers to do, and how a professional employer organization (PEO) can help you navigate it all and stay compliant.

Who is impacted by the New Jersey Pay and Benefit Transparency Act?

The New Jersey Pay and Benefit Transparency Act affects employers with 10 or more employees, regardless of employees’ locations, as long as at least one employee works in New Jersey for a minimum of 20 calendar weeks. Employment agencies must also abide by the law.

Any job opportunity performed completely or partially in the state is covered, as well as those that report to a supervisor, office, or other worksite within New Jersey, even if the work is performed outside of the state.

Key requirements of the law

When advertising a job, promotion, or transfer opportunity, employers must disclose:

• Compensation information: A specific salary or hourly rate, or a range that includes both minimum and maximum wages for the position.
• Job description: If one exists, it must be included.
• Benefits and additional compensation: An overview of available benefits (e.g., healthcare, paid time off (PTO), and retirement plans) and other forms of compensation (e.g., bonuses, commissions, and stock options).
• Commission-based roles: A statement indicating that compensation is commission-based must be provided for positions paid solely on commission.
• Internal promotion notices: Employers must make reasonable efforts to inform current employees of promotion opportunities before making a final decision. Promotions based on years of service, performance, or emergent circumstances are exempt from this requirement.

Disclaimer: This is not an exhaustive list of employment laws. Please refer to your regional and industry-specific legal guidelines or consult your legal counsel for detailed and specific information.

Potential consequences of non-compliance

The New Jersey Commissioner of Labor and Workforce Development enforces the wage transparency legislation. Non-compliance may result in a $300 fine for a first violation and up to $600 for each subsequent one. Additionally, employees cannot sue employers directly for non-compliance with the Act.

5 ways businesses can stay protected

Navigating a new law can feel complex, but the following five strategies can help businesses establish a foundation of proactive protection:

• Update job postings to include salary/wage ranges, benefits, and other compensation.
• Review promotion policies to ensure employees are notified of opportunities in advance.
• Train human resources (HR) staff and hiring managers on the new requirements.
• Establish anti-retaliation protocols related to compensation discussions.
• Document compensation ranges and job descriptions to strengthen audit readiness.

PEOs: dedicated to simplifying HR compliance for SMBs

The recent New Jersey wage transparency law may seem daunting, especially for small and medium-sized businesses (SMBs) that may not have expansive HR teams. However, a PEO partner can provide the necessary support to navigate these changes effectively.

PEOs, a type of HR outsourcing provider, specialize in helping SMBs streamline their human resources and stay compliant. For example, ExtensisHR, a national PEO with headquarters in New Jersey, offers the following solutions:

• Personalized HR guidance: Our dedicated SHRM-Certified HR Managers are trained on the latest employment laws and can help review promotion policies, establish compliant workflows, create anti-retaliation protocols related to compensation discussions, and manage a multistate workforce.
• Risk and compliance expertise: Proactively stay updated on legal changes, helping you avoid penalties associated with non-compliance.
• Full-cycle recruiting services: A seasoned recruiting team ensures your business’s job descriptions and postings are compliant. Salary benchmarking services are also available, confirming you pay a fair, competitive rate. Plus, these services are included in ExtensisHR’s PEO solution at no extra cost.
• An interactive learning and development portal: A comprehensive platform featuring on-demand courses covering a variety of compliance topics.

By proactively adapting to New Jersey’s wage transparency mandate, businesses can foster a more equitable workplace—and a PEO like ExtensisHR is there to guide you every step of the way.

Looking for assistance adjusting your business operations to comply with the New Jersey Pay and Benefit Transparency Act? We’re here to help. Learn more about ExtensisHR’s PEO solution, or contact our team of experts today.