Reminder For Employers—New York Statewide Pay Transparency Law Takes Effect

The New York state law requiring employers to disclose expected compensation ranges in advertisements for jobs, promotions, and transfers takes effect on September 17, 2023.

Quick Hits

• New York pay transparency law takes effect on September 17, 2023.
• The law requires employers with four or more employees to disclose the minimum and maximum annual salary or hourly wage in advertisements for jobs, promotions, and transfers, including electronic job postings.

New York Governor Kathy Hochul signed Senate Bill S9427A into law in December 2022, six months after it was passed by the New York State Legislature. The state law was subsequently amended in March 2023 by S1326 to clarify the application of the law to positions performed outside of New York and relieve certain information retention requirements for employers. The New York State Department of Labor has further proposed regulations, which once finalized will provide additional guidance for employers.

In addition to the statewide law, several New York localities, including Albany County, Ithaca, and New York City, have enacted their own pay transparency requirements.

Here are some key parts of the statewide law that employers might want to consider:

• The law requires employers with four or more employees to disclose the minimum and maximum annual salary or hourly wage in job postings.
• Compensation ranges must be included in all postings for internal promotions and transfer opportunities.
• The law applies to postings that advertise a job, promotion, or transfer opportunity to a pool of potential applicants, both internally and externally, and include electronic job postings.
• The requirements apply to postings for jobs that will physically be performed in New York State or by workers outside the state who report to an office or supervisor in New York.
• Job postings must include a written description of the job, but only if a description exists.
• The law does not apply to job advertisements from temporary help firms but does apply to agents and recruiters.
• The law does not supersede or preempt local laws, rules, or regulations.
• Employers that violate the law could face civil penalties of $1,000 for a first violation, $2,000 for a second violation, and $3,000 for a third or any subsequent violation.

Next Steps

Employers with employees in the state of New York or with positions reporting to an office or supervisor in the state may want to review their job postings for compliance with the new pay range disclosure requirements. Employers may also want to consider cross-jurisdictional compliance issues as several states have now implemented similar or additional disclosure requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.