Update: For the most recent information on the Pay Transparency Law, follow this link:
New York State Amends Pay Transparency Law
By now, you may have heard that starting later this year, job postings in New York State must include a salary range. What does this mean for your business? Read on for what employers need to know concerning this new law.
What is the new Pay Transparency Law?
On December 22, 2022, New York Governor Kathy Hochul signed into law the New York Pay Transparency Law[1] (the “Law”), which takes effect September 18, 2023. The Law amends New York Labor Law[2] to require most private sector New York employers to provide salary ranges for all advertised jobs and promotions in New York State. Similar requirements enacted in 2022 already apply to employers who operate in New York City. Nevertheless, the Law includes some significant differences from the New York City law and others that employers should be aware of.
Essentially, the Law requires employers of four or more employees[3] advertising a job, promotion, or transfer opportunity to disclose the “compensation or a range of compensation for such job, promotion, or transfer opportunity” in the job posting. The “range of compensation” is defined as “the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of the posting.”
The Law applies to jobs that can or will be performed, at least in part, in the state of New York. Therefore, depending on forthcoming guidance from the New York Department of Labor, the Law could be construed broadly enough to apply to out-of-state employers that have employees performing work in New York State. (Note that the Law does not apply to temporary help firms that assign employees to other employers for short-term projects or seasonal work, since such firms are already required to provide wage range information in compliance with the New York State Wage Theft Prevention Act.)
How is the Pay Transparency Law different from similar laws already enacted throughout New York State?
The first notable difference from the New York City law is that the Law requires employers to keep and maintain records of the posted salary ranges for at least six years, beginning on the effective date (September 18, 2023). Such records must demonstrate “the history of compensation range for each job, promotion, or transfer opportunity and the job descriptions for such positions, if such descriptions exist.”
The other prominent feature of the Law is that in addition to the salary range, it requires employers to include a “job description for [a] job, promotion, or transfer opportunity, if such description exists” in any advertisement for a job, promotion, or transfer opportunity in New York State. There are currently no parameters that define “job description,” but employers should ensure that covered postings include and disclose any pre-existing job descriptions relating to the job being posted if they do indeed exist.
Unlike the limited private right of action under the New York City law, there is no right to file a private cause of action for alleged violations of the state law. Instead, aggrieved individuals may file a complaint with the New York State Commissioner of Labor. Failure to comply with the Law can result in civil penalties of up to $1,000 for a first violation, $2,000 for a second violation, and $3,000.00 for a third or subsequent violation. We will continue to monitor any additional rules and regulations promulgated by the New York Department of Labor.
Please contact us for guidance or with any questions.
For additional information, please visit:
https://www.nysenate.gov/legislation/bills/2021/S9427
[1] S.9427/A.10477
[2] §194-b
[3] The Law also applies to employment agencies and the employees and agents of employers and employment agencies.