By: Ty Hyderally, Esq., Jennifer Vorih, Esq, and Adela Barbura

As discussed in an August 17, 2023, blog, “New Jersey Workers Gain Powerful Protections in Bill of rights,” (https://www.employmentlit.com/2023/08/17/new-jersey-temporary-workers-protections-bill-of-rights/), the New Jersey “Temporary Workers’ Bill of Rights” took effect on August 5, 2023. This new law includes equal pay and pay transparency obligations for employers, regarding temporary workers.

Prior to New Jersey implementing the Temporary Workers’ Bill of Rights, Jersey City took charge and enacted its own pay transparency law in early 2022. In fact, Jersey City is among several cities, including Cincinnati and Toledo, Ohio, which have taken steps to enact their own pay transparency laws.

Women earn 84% less than men working in the same position, with minority men and minority women making even less. Therefore, the goal behind the bill was to “help combat the wage gap for [] minority members of [the Jersey City] community … [and] to ensure that women and minorities are paid equally for the same work or positions.”

Jersey City’s pay transparency law applies to any employer with five or more employees, or independent contractors, whose principal place of business is within Jersey City. No matter whether the position is temporary or permanent, these employers are required to “post a minimum and maximum salary and/or hourly wage, and benefits” to any print or digital media job postings or advertisements in the city. This allows for full transparency between the employer and job seekers to ensure that, “residents of the City are paid fairly and equally in comparison to their colleagues.” Additionally, full pay transparency can foster a better work environment for all by creating trust and unity within the organization or company.

Employees who have had one low-paying job are often stuck in low-paying positions, because many employers pay new employees based on the candidates’ prior salaries. Thus, the Jersey City law points to N.J.S.A. § 34:6B-20, emphasizing that, “it shall be unlawful for a New Jersey employer to screen a job applicant based on the applicant’s salary history or to require that the applicant’s salary history satisfy any minimum or maximum criteria.” If an employee or job applicant believes an employer has violated these provisions, they may report any violations to “the City’s Office of Code Compliance (OCC) or to the Women’s Advisory Board for referral to the OCC.” A fine of up to $2,000 can result from non-compliance with the law.

The passage of these laws is part of a growing trend toward providing more protections for employees. According to data from the National Women’s Law Center, around 26.6% of the U.S. labor force, which is roughly around 44.8 million people, reside in a state where pay transparency laws have been enacted. However, these numbers are continuing to grow. In fact, the data gathered from the National Women’s Law Center does not account for the recent passage of New Jersey’s own pay transparency law contained in the Temporary Workers’ Bill of Rights, which significantly expands protections and rights for more than 125,000 temporary workers in New Jersey. Considering that nearly fifteen other states and Washington D.C. are actively considering their own pay transparency laws, roughly half of U.S. workers may be entitled to pay transparency in the near future.

Ensuring greater rights for workers is a crucial element in closing the racial and gender wage gaps. These new laws empower employees and job applicants, which is a major win for the labor force! For more information, you can read the full version of Jersey City’s pay transparency bill here.

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