Southern Ocean Chamber has worked with members through our popular Southern Ocean Job Ops platform. Many employers may not be aware that the New Jersey’s Pay and Benefit Transparency Act (NJPBTA), which took effect on June 1, 2025, marks a major shift in how employers must communicate compensation and benefits. Designed to promote fairness and reduce wage disparities, the law requires employers to be upfront about pay and benefits in job postings and internal promotion opportunities.

While the law applies to any employer with 10 or more employees doing business or accepting applicants in New Jersey, its impact is especially significant for small businesses navigating limited resources and lean HR structures.

Under the Act, covered employers must: Include salary ranges (minimum and maximum) in all job postings. Disclose benefits such as healthcare, retirement plans, paid time off, and bonuses. Provide transparency for promotions, meaning employees must be notified of advancement opportunities and their compensation details. Comply whether the job is onsite, hybrid, remote, or even if the employer is located out of state but hiring New Jersey workers.

These requirements are intended to give jobseekers and employees a clear understanding of compensation before applying or pursuing internal opportunities.

For small businesses, the New Jersey Pay and Benefit Transparency Act introduces both challenges and opportunities. One of the most immediate impacts is the increase in administrative work. Many small employers do not have dedicated HR teams, so developing consistent salary bands, documenting benefits, and updating job postings can require new systems and additional time.

The law also creates pressure to standardize pay. Any inconsistencies become more visible, and if employees in similar roles are paid differently, small businesses may need to adjust wages or be prepared to justify those differences with clear, objective criteria. This shift can also reduce flexibility in hiring. Employers who previously relied on negotiable or fluid pay ranges must now commit to defined compensation upfront, which can limit room for negotiation or quick adjustments.

At the same time, transparency can become a competitive advantage. Clear pay ranges and benefit disclosures help build trust and may attract candidates who value openness and fairness. However, the stakes for compliance are high. Even minor violations can lead to penalties, which can have a disproportionate impact on smaller employers.

To stay compliant, small businesses should establish standardized pay ranges for each role, clearly document all benefits, and review job postings to ensure they include the required disclosures. Managers should be trained on the rules surrounding internal promotions, and employers may benefit from consulting HR or legal professionals to stay aligned with evolving guidance.