On June 1, 2025, New Jersey’s Pay and Benefit Transparency Act (“the Act”) took effect, ushering in a new era of openness around pay and benefits for job applicants and employees. This law is part of a growing national movement toward pay transparency, but it introduces several unique requirements and has a broad reach. Employers operating in or hiring employees from New Jersey must act quickly to ensure compliance.

Key provisions of the Act include:

  • Broad Definition of Employer. The Act applies to any employer that has 10 or more employees over 20 or more calendar weeks and: (a) conducts business in New Jersey; (b) employs individuals within New Jersey; or (c) takes applications for employment within New Jersey even if the employer neither conducts business in New Jersey nor employs individuals in the state. On its face, the Act applies even if a company does not have any active employees in the state of New Jersey. The Act covers private businesses, public entities, and non-profits, as well as job placement and referral agencies and other employment agencies.

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