New Jersey’s Pay Transparency Law Targets Wage Gaps For Women And Workers Of Color

TRENTON, N.J. — A new pay transparency law took effect in New Jersey earlier this week, requiring employers with 10 or more workers to include salary ranges in job postings, a step state officials say could help narrow persistent wage disparities that disproportionately affect women and people of color.

The law, signed by Gov. Phil Murphy in Nov. 2024, aims to increase fairness in hiring by requiring companies to disclose the minimum and maximum compensation for advertised positions. Supporters say it will bring greater accountability and empower job seekers to negotiate more confidently.

As of 2025, 14 states and Washington, D.C., have enacted pay transparency laws, with several others considering similar measures. This growing national trend reflects an increasing commitment to fair pay practices across the country.

“Far too often, employees are uncertain or unaware of opportunities for growth and added compensation, and this bill is designed to change that,” said Assemblyman Joe Danielsen (D-Somerset), one of the bill’s sponsors, in a statement when the bill passed

Advocates argue that a lack of pay transparency has long contributed to systemic inequities. Data from the National Women’s Law Center underscores those concerns: Black women working in New Jersey typically earn just 57 cents for every dollar paid to white, non-Hispanic men. Latina women fare even worse, earning only 46 cents on the dollar. The new law is designed in part to address such stark gaps by ensuring workers know what roles actually pay before applying or accepting offers.

Furthermore, a study published in the Cornell Journal of Law and Public Policy examined the effects of pay transparency laws and found that while these laws can promote equity, their impact varies. The study highlighted that while some workers benefit from increased transparency, others may face challenges if employers adjust their pay structures in response to these laws.

“This law is especially impactful in our cities, where women of color make up a large share of the workforce but have historically been underpaid,” said Nicole Rodriguez, president of New Jersey Policy Perspective. “Transparency means power — it allows workers to know their worth and push for it.”

The legislation also follows a growing national trend. States including New York, Colorado, and California have enacted similar measures, and early research suggests they’re making a difference. A study cited by the American Economic Association found that pay transparency can reduce the gender pay gap by up to 20%.

While business groups have raised concerns about implementation, especially for roles with wide pay bands based on experience, state officials say the law is meant to be flexible.

“We’re not demanding exact figures, just a good-faith salary range,” said Labor Commissioner Robert Asaro-Angelo. “This helps ensure that job seekers — regardless of gender or race — know what opportunities are truly worth.”

The law includes a grace period for employers to adjust, with warnings for initial violations. Repeated failures to comply may result in penalties under the state’s Law Against Discrimination.

“This is about economic justice,” said Assemblywoman Shavonda Sumter (D-Passaic), another sponsor of the bill. “And it’s a critical step toward closing the wage gaps that hold back too many New Jerseyans.”

As job postings begin reflecting the new requirements, workers and advocates alike will be watching closely to see if transparency leads to lasting change.