In an effort to address pay equity, the New Jersey Legislature has passed S. 2310 (referred to as the “proposed law”) which will require wage transparency for both promotional opportunities as well as employment listings for new jobs and transfers. Governor Murphy is expected to sign S. 2310 into law. The proposed law defines an employer as: “any person, company, corporation, firm, labor organization, or association which has 10 or more employees over 20 calendar weeks and does business, employs persons, or takes applications for employment within this State, including the State, any county or municipality, or any instrumentality thereof.” It includes job placement and referral agencies and other employment agencies. A “promotion” is defined as “a change in job title and an increase in compensation.”
Promotional Opportunities
With respect to promotional opportunities addressed under subsection (a) of the proposed law, an employer will be required to make reasonable efforts to announce, post, or otherwise make known opportunities for promotion that are advertised internally within the employer or externally on internet-based advertisements, postings, printed flyers, or other similar advertisements to all current employees in the affected department or departments of the employer’s business prior to making a promotion decision. Promotions for current employees based on years of experience or performance are not subject to these notification requirements. Further, employers are not prohibited from making a promotion on an emergent basis due to an unforeseen event.
Postings for New Jobs and Transfer Opportunities
Regarding postings for new jobs and transfers, subsection (b) of the proposed law will require that an employer disclose in each posting for new jobs and transfer opportunities that are advertised by the employer either externally or internally the hourly wage or salary, or a range of the hourly wage or salary, and a general description of benefits and other compensation programs for which the employee would be eligible. An employer is not prohibited from increasing the wages, benefits, and compensation identified in the job opening posting at the time an offer of employment is made to the applicant.
Penalties
Employers who violated the proposed law will be subject to a civil penalty in an amount not to exceed $300 for the first violation and $600 for each subsequent violation.
An employer’s failure to comply with subsection (a) of this section for one promotional opportunity will be considered one violation for all listings of a particular promotion, even if that promotion is listed on multiple forums. Similarly, an employer’s failure to comply with subsection (b) of this section for all postings for a particular job opening or transfer opportunity shall be considered one violation regardless of the number of postings that list, or forums that advertise, that job opening or transfer opportunity, as appropriate.
Temporary Help Service Firms and Consulting Firms
The proposed law states that temporary help service firms and consulting firms will not be required to provide (1) the hourly wage, salary or the range or hourly wage or salary, or (2) a general description of benefits and other compensation programs for which the employee would be eligible, on job postings that are posted for the purpose of identifying qualified applicants for potential future job openings and not for existing job openings. However, temporary help service firms or consulting firms will be required to provide the pay and benefit information to an applicant for temporary employment at the time of interview or hire for a specific job opening.
Takeaways
S.2310 is set to take effect 6 months after Governor Murphy signs it into law. Once enacted, employers should ensure that HR and those with recruiting and hiring authority are aware of the law’s requirements and be sure to comply with the posting and disclosure requirements. Further, employers should prepare by determining and documenting hourly and salary ranges for each position.
This summary is for informational purposes only and is not intended to constitute legal advice. This information should not be reused without permission.