Transparency in employment practices has become a cornerstone of fair and equitable workplaces, and a new law in New Jersey aims to strengthen these principles. The legislation requires employers to take proactive steps to ensure transparency in promotional opportunities and employment listings, providing employees and job seekers with critical information about opportunities and compensation.
Under the new law, employers will need to notify all eligible employees within relevant departments about promotional opportunities before making a decision. This requirement applies to both internal and external advertisements, ensuring that promotions are communicated equitably. However, the law allows exceptions for promotions based on years of experience or performance, as well as for emergent promotions necessitated by unforeseen events.
The bill also seeks to enhance transparency in job postings. Employers must disclose the hourly wage or salary—or a range—along with a listing of benefits and other compensation programs available within the first 12 months of employment. This requirement applies to all postings for promotions, new positions and transfer opportunities, whether advertised internally or externally. Temporary help and consulting firms are granted limited exceptions for speculative job postings, but they must provide pay and benefit details to applicants during interviews or at the time of hire for specific roles.
To ensure compliance, the bill imposes civil penalties for violations. Employers may face fines starting at $1,000 for the first infraction, increasing to $5,000 for a second offense and $10,000 for subsequent violations. These penalties will be enforced by the Commissioner of Labor and Workforce Development through summary proceedings. The law’s enforcement mechanisms underscore the importance of adhering to these transparency requirements and the consequences of non-compliance.
This legislation reflects a growing emphasis on accountability in workplace practices. By mandating disclosure of compensation and promotional opportunities, the bill aims to create a level playing field for all employees and job applicants. The law will take effect on May 18, 2025, giving employers time to adapt their policies and practices to meet the new requirements.
For employers, this is an opportunity to assess and improve communication and transparency in employment practices. For employees and job seekers, the bill promises greater access to information that can empower them to make informed decisions about their careers.