New York State’s Pay Transparency Law Takes Effect Sept. 17

Leah Shepherd By Leah Shepherd September 15, 2023

​Under New York's new law on pay transparency, effective Sept. 17, employers in the state with at least four workers must include an hourly rate, salary or pay range for all advertised jobs and promotions. The job postings must include a job description if one exists.

We've collected a group of articles on the news from SHRM Online and other trusted sources.

Addressing Pay Disparities

The new law applies to internal and external job postings. It aims to provide job seekers with the kind of information that addresses systemic pay inequity and discriminatory wage-setting and hiring practices, according to the New York State Department of Labor.

(Long Island Business News)

Steps to Comply

To comply with the law, employers can reassess compensation policies, determine pay ranges for all positions, and train HR, recruiters and hiring managers on the implications of the disclosure obligation.

Gov. Kathy Hochul said the pay transparency required by the law will "empower workers with critical information, reduce discriminatory wage-setting and hiring practices, and help level the playing field for all workers."

(SHRM Online and SHRM Online)

Impact on Remote Jobs

The new law applies to jobs in New York state and any remote positions that may be performed outside of the state, but report to a supervisor, office or other worksite in the state. Employers should review all new job postings and consider conducting a pay equity audit.

Even before the state law, New York City, Westchester and Albany counties and the city of Ithaca had ordinances requiring disclosure of compensation information in job advertisements. Small employers previously exempt from local salary transparency requirements will now have to comply.

(Epstein Becker Green)

Third-Party Postings

Job ads are covered regardless of whether they are posted by the employer directly or through a third-party, such as a recruiter or a job listing website. The onus is on the employer to ensure third parties include the required pay range.

An employer can adjust a good-faith range of compensation during the hiring process. However, an employer's actions would lack good faith if the disclosed range does not reflect or misrepresents what the employer is willing to pay to the successful applicant. Nothing in the wage disclosure statute requires employers to advertise for vacant positions or to use any specific medium for posting advertisements.

(Fisher Phillips)

New York City’s Law

Proposed amendments to New York City's pay transparency law would require disclosure of nonwage compensation associated with a position, such as bonuses, benefits, stocks and options.

Additionally, if enacted, the amendments would require New York City employers to provide employees with the range of compensation, including nonwage compensation, for their job title annually and upon request. The proposed amendments have been referred to the Committee on Civil and Human Rights for further review.

(SHRM Online)



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