New York State’s Pay Transparency Law is set to take effect on September 17, 2023. The law was amended on March 3, 2023, well in advance of its effective date, to clarify, limit and expand various employer obligations. New York joins New York City, California, Rhode Island and Washington, D.C. in passing pay transparency legislation that requires covered employers to list compensation ranges for all job advertisements and postings.
Here are some of the new law’s basic requirements:
- The law applies to all private employers with at least four employees.
- Covered employers must include a minimum and maximum annual salary or hourly compensation range in all advertisements for a job, promotion or transfer opportunity that will be performed, at least in part, in New York. Although when first enacted the law seemed to apply to remote out-of-state workers, the amendment restricts the new law’s application to jobs that are physically performed in New York, so it would not apply to remote out-of-state workers, unless (and that’s a big unless) the out-of-state worker reports to a supervisor or work location that is located in New York.
- Pay transparency requirements apply to internal and external job postings.
- Covered employers must believe in good faith at the time of the posting that the salary range is accurate.
- For commission-based jobs, a general statement that compensation is based on commission satisfies an employer’s obligation to disclose a salary range in the posting.
- The new law also imposes a record-keeping obligation on employers. Covered employers are now required to keep and maintain records showing compliance with the new law. Although the amendment removed the requirement that employers maintain a history of compensation ranges for each job, practically speaking it would be best if employers did, in fact, maintain such information.
The New York State Department of Labor has regulatory authority over the new law and, hopefully, will issue guidance before the effective date. Any individual claiming to be aggrieved by an employer’s violation of the new law may file a complaint with the Commissioner of Labor.
New York City employers must still comply with New York City’s Pay Transparency Law, which was passed on November 1, 2022, and covered here. The New York State Pay Transparency Law explicitly states that it does not preempt local ordinances, so New York City employers need to comply with both laws.
New York employers should review their job postings and advertisements to ensure compliance with all pay transparency laws. Further, New York employers should review their recordkeeping procedures and, if not already done, maintain a record of compensation for posted positions. As always, the attorneys in Murtha Cullina’s Labor & Employment Group remain ready to advise on these and other issues.