New York Employer Pay Transparency Obligations Signed Into Law

New York Employer Pay Transparency Obligations Signed Into Law

New York employers will soon need to change how they advertise job opportunities...

Beginning September 17, 2023, New York employers must include the anticipated range of compensation for any employment opportunities it advertises. In case you missed it, Governor Kathy Hochul enacted the New York Pay Transparency Law (NYPTL) in December.  The NYPTL (S.9427-A/A.10477) requires employers doing business in New York to list salary ranges for all advertised jobs and promotions.

Obligations Under New York Pay Transparency Law

Employers with at least four employees and employment agencies will need to comply with the NYPTL. Temporary help firms that recruit and hire their own employees to perform work for other organizations are not covered.

Advertisements for internal and external “job, promotion, or transfer opportunities” must include the following information:

• the compensation or range of compensation (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 posting;
• the job description for the position, if one exists; and
• a “general description of other forms of compensation to be offered if applicable, including but not limited to fringe benefits, bonuses, stock options, or commissions.”

The NYPTL also includes record-keeping obligations. Covered employers must keep and maintain necessary records to comply with the requirements of the law, including but not limited to the history of salary ranges for each job, promotion, or transfer opportunity and the job descriptions for the position, if they exist.

Violations of the NYPTL may result in civil penalties of up to $3,000. Additionally, aggrieved individuals (applicants and employees) may file a complaint with the New York State Commissioner of Labor. 

Comparison to the New York City Salary Transparency Law

New York City employers are already required to disclose salary information under the New York City Salary Transparency Law (NYCSTL), which took effect on November 1, 2022. The NYCSTL makes it an unlawful discriminatory practice under the New York City Human Rights Law (NYCHRL) to not include in job listings the minimum and maximum salary offered for any position located within New York City. The range for the listed maximum and minimum salary must extend from the lowest salary to the highest salary that the employer in good faith believes it would pay for the advertised job, promotion, or transfer.

There are a few key differences between the two pay transparency laws. The New York City Salary Pay Transparency Law (NYC SPTL) counts full-time, part-time, permanent and temporary employees, interns, and independent contractors when determining if an employer meets the four-employee threshold. The state-wide law has the same threshold, but only counts employees to determine coverage.

The information that must be disclosed in a job advertisement under the NYPTL is more expansive. Rather than just a salary range, employers must provide a job description for the position, if one exists; , as well as a “general description of other forms of compensation to be offered if applicable, including but not limited to fringe benefits, bonuses, stock options, or commissions.”

Unlike the NYPTL, the (NYC SPTL) contains a private right of action for aggrieved employers. The (NYC SPTL) also allows employers to cure first-time violations. It specifically provides that the New York City Commission on Human Rights will not assess a civil penalty for a first complaint alleging a violation of the salary transparency provision, provided that the employer shows they have remedied the violation within 30 days of receiving the Commission’s notice of the violation.

Next Steps for New York Employers

While the NYPTL does not take effect until September 18, 2023, it behooves New York employers to get ahead of it since pay transparency compliance is about to get more complicated. We expect the New York Commissioner of Labor to enact regulations regarding the New York Pay Transparency Law prior to its effective date. We will continue to track developments related to this law, so please monitor our website for updates.

If you have questions, please contact us

Please contact a Scarinci Hollenbeck attorney at 201-896-4100 regarding any questions on compliance with pay transparency laws and preparatory steps that can be taken as these laws and regulations are expected to continue to be enacted and amended.