Do Connecticut employers, with no employees in New Jersey, need to comply with New Jersey pay transparency laws? Maybe.
In today’s interconnected world, businesses are no longer confined by state borders. With the rise of remote work, some employers may utilize a workforce scattered across the country or the world. Typically, employment laws apply based on the state in which the work is performed. However, pay transparency laws often apply across borders, and it is becoming increasingly important for employers to adopt a standardized approach to ensure compliance.
In Connecticut, an employer must provide an applicant for employment the “wage range” for the position for which the applicant is applying upon the applicant’s request or prior to or at the time the applicant is made an offer of compensation, whichever comes first. Therefore, any applicant who receives an offer must be told the wage range for the position, even if the applicant did not make a request for the information. The law applies to current employees as well. The employer must provide the wage range for the position at the time of hire, when the employee’s position with the employer changes, or when the employee requests the wage range. Connecticut employers also may not ask a prospective employee to disclose wage history.
At least 14 states have enacted pay transparency laws. Some states require job postings to comply with these laws even if the employer has limited interaction with the state. For example, a New Jersey law that went into effect on June 1, 2025, requires employers with 10 or more employees to comply with the law if they conduct business in New Jersey, employ individuals within New Jersey, or accept applications for employment from within New Jersey. These employers must include pay range, benefits, and other forms of compensation in job postings.
To navigate the complexities of pay transparency laws across different states, Connecticut employers can adopt a standardized approach:
- Disclose wage ranges and benefit information in all internal and external job postings and upon request to applicants and employees. Ensure that the wage data provided in job postings accurately reflects what you reasonably expect to pay for a role.
- Disclose pay information for internal job transfers and promotions at an employee’s request.
- Announce promotion opportunities to every employee the same day the position opens.
- Do not ask job candidates about their pay history.
Our team of labor and employment attorneys can assist employers ensuring compliance with all applicable labor and employment laws.