New Jersey could be the next state to enact a pay transparency law – which means employers should have an action plan ready for compliance. New Jersey already has one of the most robust pay equity laws in the country, and a bill that unanimously passed the state’s Senate would add to employers’ obligations. If passed by the Assembly and signed by the Governor, the law would require you to disclose certain compensation and benefits information in job listings and for promotional opportunities. What do you need to know about this pending legislation and what should New Jersey employers do next to prepare?

Background on New Jersey’s Pay Equity Law

• Pay Protections. New Jersey’s Diane B. Allen Equal Pay Act made history as the most expansive pay equity law in the country when it was first enacted in 2018. Under this law, which added to the Law Against Discrimination (LAD), employers are prohibited from paying wages to a member of a protected class at a rate of compensation (including benefits) that is less than the rate paid to employees who are not members of the protected class for substantially similar work. The protected classes include all categories recognized under the LAD, such as race, creed, color, national origin, ancestry, age, affectional or sexual orientation, pregnancy, sex, gender identity or expression, and disability.
• Exceptions. The exceptions for a pay disparity are limited to decisions based on a seniority system, a merit system, or legitimate bona fide...

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