Pay Transparency for Internal Promotions in NJ: Must Employers Post Salaries for Existing Staff?

Pay transparency rules are changing how New Jersey employers handle promotions and internal job postings. As more salary information becomes public, employees expect the same details for internal opportunities as outside applicants. The legal requirements depend on how the promotion is offered. 

Many workers reach out after learning that a promotion was filled before they even knew the position was available or that no salary information was shared during the process. Our attorneys at Brandon J. Broderick regularly review these workplace disputes. Internal promotions often receive less structure than outside hiring, yet they directly affect career growth. 

When an internal promotion falls under New Jersey's pay transparency law, employers must meet specific posting and pay disclosure requirements. 

This article explains why employers must disclose salary information, what existing employees should expect during the promotion process, and when to consult an equal pay lawyer in New Jersey. 

When New Jersey Pay Transparency Rules Apply to Internal Promotions 

Since June 1, 2025, New Jersey's pay transparency law has required many employers to disclose salary ranges and other compensation information in covered job postings. Internal promotions follow different rules. While advertised new positions and transfer opportunities require compensation disclosures, advertised promotions focus on giving eligible employees notice before a selection is made. 

Coverage starts with the employer. A business falls under the law if it has at least 10 employees over 20 calendar weeks and does business, employs people, or accepts employment applications in New Jersey. Public employers are included. The law reaches the state, counties, municipalities, and their agencies. Labor organizations and employment agencies also fall within its definition of employer.

According to the New Jersey Department of Labor and Workforce Development, a covered employer’s nationwide posting must comply if the company does business, employs people, or takes covered applications in the state. 

Internal advertising takes many forms. A formal listing on a company career page is only one example. NJDOL covers:

• Messages posted on an employee intranet or internal job board
• Department emails, newsletters, and workplace flyers
• Public job-search websites and company career pages
• Social media posts and advertisements placed through a recruiter

Content matters more than the label. Calling an opening a “career opportunity” doesn’t remove the disclosure duty if employees are invited to apply for a job or transfer. Limiting it to existing staff offers no exemption.

Temporary help and consulting firms receive narrower treatment. They don’t have to place compensation information in general advertisements used to collect candidates for possible future work. Once they interview or hire someone for a specific temporary opening, they must provide the wage, benefits, and other compensation information.

Employers that fall outside the posting requirements still have other obligations. New Jersey's protections apply broadly, and the state's salary history ban also limits what employers can ask applicants. An equal pay attorney in New Jersey can help determine whether an employer has complied with these separate requirements. 

Internal Job Postings and Salary Disclosure Requirements in New Jersey

New Jersey separates the duty to announce a promotion from the duty to disclose compensation. Covered employers must make a reasonable effort to notify eligible employees about promotion opportunities. Employees in the affected department or departments should receive notice before the employer fills the position, even if the promotion is advertised outside the company. 

Nothing in the statute requires an employer to advertise every promotion. The rule applies when the employer advertises the opportunity. It also doesn’t require companywide notice when only one or two departments are eligible. Employees in every department to which the opportunity is open should receive it.

Two exceptions limit the promotion-notice requirement:

• A promotion awarded to a current employee based on years of experience or performance
• An emergency promotion made because of an unforeseen event

An employee moving to the next level under an established seniority system doesn’t trigger an open competition. An unexpected departure also permits an emergency appointment. Employers should not use either exception to hide a competitive opening because managers favor one candidate.

NJDOL’s proposed regulations define a promotion as a change in job title accompanied by a raise. They define a transfer as a title change without increased compensation. A new job doesn’t count as a promotion or a transfer. 

For advertised new jobs and transfers, the employer must provide:

• An exact hourly wage or annual salary, or a range with a lower and upper figure
• A general description of benefits, such as health insurance, paid leave, and retirement benefits
• A general description of other compensation programs, including bonuses, commissions, and profit-sharing

The proposed rules require pay bands with both a lower and an upper salary limit. That means postings such as "up to $90,000" or "$70,000 and above" would not comply. They also limit the size of these pay bands to 60% of the minimum salary, unless another law or a union contract provides otherwise. 

Employers may offer more than the posted salary range, but differences in departmental budgets don’t excuse unlawful disparities. 

How a Promotion Creates a Pay Equity Claim in New Jersey

The Diane B. Allen Equal Pay Act is part of the New Jersey Law Against Discrimination. It prohibits employers from paying an employee in a protected class less than someone outside that class for substantially similar work.

Protected characteristics include race, sex, age, disability, pregnancy, national origin, sexual orientation, and gender identity or expression. An employee doesn’t have to prove the employer intentionally discriminated. The focus is on whether workers performing substantially similar work receive equal compensation.

According to guidance from the New Jersey Division on Civil Rights (DCR), substantially similar work is assessed as a combination of skill, effort, and responsibility. Job titles help describe a position, but they do not control the result. Two managers with different titles sometimes perform substantially similar work, while two employees sharing a title sometimes carry materially different responsibilities.

Compensation extends beyond base salary. A fair comparison includes:

• Hourly wages, salary, overtime, and merit pay
• Commissions, bonuses, and stock options
• Health insurance, vacation time, and retirement contributions
• Other cash and noncash benefits tied to employment

Not every pay difference is unlawful. An employer may rely on a legitimate seniority or merit system, or on job-related factors like education, training, experience, or production. Those reasons must fully explain the difference and be applied consistently. At Brandon J. Broderick, our attorneys often see employers rely on subjective opinions, but a manager's view of an employee's "worth" is not a valid system. 

Using an Existing Employee’s Salary to Set Promotion Pay

New Jersey separately bans employers from screening outside applicants based on salary history. N.J.S.A. 34:6B-20 excludes applications for an internal transfer or promotion with the employee’s current employer. As a result, a current employer isn’t barred from knowing or considering what its employee already earns.

Giving every promoted employee the same percentage raise doesn’t automatically comply with the law. According to DCR, using prior salaries to calculate a promotion increase can preserve an existing wage gap affecting a protected class. 

The Pew Research Center reported that women earned about 85% of what men earned in 2024. This is an improvement from 81% in 2003, but the difference still exists. If two employees perform the same higher-level job but receive 10% raises from different starting salaries, the Equal Pay Act may require a closer look. 

Salary ranges help employees compare offers, but they are only one piece of the picture. A pay difference within the posted range doesn’t always mean the law was violated. To build a strong claim, our legal team often starts by comparing the actual job duties when a longtime employee is offered less than an outside hire for substantially similar work. 

What to Do About Salary Disclosure and Equal Pay Violations in NJ

Workers can file a complaint with the Division of Wage and Hour Compliance if an employer leaves out required pay information in a new job or transfer posting or fails to provide the required notice. 

Supporting records should show what happened before a webpage changes or disappears. NJDOL recommends preserving more than a live link. Useful material includes:

• A screenshot or downloaded copy showing the complete posting, date, and web address
• Internal emails, intranet notices, newsletters, and photographs of workplace postings
• Records showing which departments were eligible and when the employer made its decision
• Job descriptions, applications, interview messages, and the final compensation offer
• Pay records and information coworkers lawfully chose to share

Transparency penalties are modest. An employer faces up to $300 for a first violation and up to $600 for each later violation. Multiple deficient advertisements for one opening generally count as a single violation, even if the employer used several websites. Separate noncompliant openings count as separate violations.

In March 2026, NJDOL reported that 42 large employers corrected or removed noncompliant postings through assurances of voluntary compliance. NJDOL waived possible penalties after they cooperated and promised future compliance.

The remedies available under New Jersey's Equal Pay Act go beyond unpaid wages. A successful claim may include lost pay and benefits, emotional distress damages, attorney fees and costs, and, in some cases, a promotion or reinstatement. Courts may also award punitive damages when the evidence supports them, and New Jersey law requires treble damages for proven equal pay and related retaliation violations. 

If you have questions about your rights, contact our legal team today for a free case review.