On December 21, 2022 Governor Hochul signed into law an amendment to New York’s state labor law, taking effect on September 17, 2023, which will require private sector employers in the state to disclose salary ranges on job postings.
The pay transparency law applies to employers with four or more employees and requires covered employers to include the following in any advertisement for a job, promotion or transfer opportunity that can or will be performed, at least in part, in New York:
The compensation, or a range of compensation, for the position; and
The job description, if one exists.
The “range of compensation” means the minimum and maximum annual salary or hourly rate that the employer, in good faith, believes to be accurate at the time of the job posting. For commission-based positions, employers may satisfy the disclosure requirement by stating in writing that the compensation shall be based on commission.
Only temporary help firms, as defined under New York State Labor Law § 916(5), are exempt from this law.
To prove compliance with the law, covered employers will be required to maintain records, including the history of pay ranges for each job, promotion and transfer opportunity and the associated job descriptions.
The law also expressly prohibits employers from retaliating against applicants or employees who exercise their rights, including by filing a complaint with the New York State Department of Labor (NYDOL) regarding an actual or potential violation of the pay transparency requirements.
Enforcement of the law resides with the New York Department of Labor (NYDOL), which can impose civil penalties for violations of the pay transparency requirements. NYDOL penalties are capped at one thousand dollars for an initial violation, two thousand dollars for second violations, and three thousand dollars for subsequent violations.
On February 13, the NYS Legislature passed a bill amending the law to clarify how it applies to remote roles. The bill now awaits signature by Governor Hochul.
In the proposed amendments, the pay transparency requirements would instead apply to any role that "will physically be performed, at least in part, in the state of New York." The bill further specifies that roles physically performed out of state, but that report to a supervisor, office or other worksite in New York are included within this definition.
Under the new definition, both a New York-based remote employee who reports to an out-of-state supervisor and an out-of-state remote employee who reports to a New York-based supervisor or office would be covered by the pay transparency requirements.
The bill also defines advertise for the purposes of the law as encompassing both internal and public job postings, including electronic postings, that contain a written description of an employment opportunity.
The amendments would also eliminate the recordkeeping requirements in the original law.
Proposed Changes in New York City
The New York City Council has also proposed edits to NYC’s pay transparency law, which took effect in November 2022.
If enacted, the amendments would require covered employers to include a job description and information about benefits, bonuses and other non-wage compensation in job postings, in addition to the already-required pay ranges.
Current employees would also have the right to learn the pay range for their own position annually and upon request.
PMP will keep you informed of the proposed changes to both the NYS and NYC Pay Transparency Laws. Contact PMP if you have any questions.