The New York City (NYC) Pay Transparency Law went into effect on November 1st, 2022, and has been causing many New York employers throughout the city much trouble, frustration, and confusion. With the law going state-wide on September 17th, employers need to make sure they are prepared to manage compliance with the changes. Here is everything businesses need to know regarding New York State Pay Transparency.
New York State Pay Transparency
With the implementation of the New York City Pay Transparency Law, New York joins states such as California, Colorado, and Washington in requiring that businesses disclose salary ranges in advertisements, rather than in offer letters or upon request from applicants or employees.
While the state-wide law does not go into effect until September 17th, 2023, New York State businesses should start ensuring a proper understanding of the requirements.
Another Step Toward New York Pay Equity
The new legislation comes as the latest action taken toward creating better pay equity amongst New Yorkers, as well as furthers the current workplace discrimination laws in place to protect those employed in the state, otherwise known as the New York State Human Rights Law.
New York Pay Transparency Requirements
Employers covered by the New York Pay Transparency are required to include a good faith salary range for every job, promotion, and transfer opportunity that they advertise (The "range" is the range upon hiring, not the range for the lifecycle of the job).
Additionally, If a job, promotion, or transfer opportunity is paid solely on commission, the employer must disclose that in the opportunity advertisement.
Employers with four (4) or more employees and agents and recruiters are covered under New York Pay Transparency.
Important for employers in New York City, under NYC Pay Transparency, only one employee must work in NYC for all employees to be covered, and the owner or employer counts toward the total as well.
Update: The law will now apply to advertisements for a job, promotion, or transfer opportunity that will physically be performed, at least in part, in New York State. The law also applies to advertisements for a job,
promotion, or transfer opportunity that will be performed outside of New York, if the employee reports to a supervisor, office, or other work sites in New York.
Recent amendments also no longer require record-keeping under this law.
Employment agencies, regardless of size are covered under the law. The new law does not apply to temporary help firms seeking applicants to join their pool of available workers.
Businesses are required to state the minimum and maximum salary for every job advertisement. The range can not be open-ended, as in "$50,000 and up", or "Up to $50,000".
Important to note is that for any advertisements where there is no range and the compensation is set, the advertisement must still list both a minimum and a maximum. In this case, the employer should list the same value for each.
For any advertisements that have multiple jobs or positions, businesses should still include individual ranges for each listing.
What Is Considered Salary?
Salary includes any base annual, hourly wage, or other rates of pay.
Salary does not include:
- Health, life, or other employer-provided insurance
- Paid or unpaid time off work, such as paid sick or vacation days, leaves of absence, or sabbaticals
- The availability of or contributions towards retirement or savings funds, such as 401(k) plans or employer-funded pension plans
- Severance pay
- Overtime pay
- Other forms of compensation, such as commissions, tips, bonuses, stock, or the value of employer-provided meals or lodging
What Is Considered a Job Advertisement?
Under the New York Pay Transparency Law, a job advertisement is defined as "a written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants, including, but not limited to, postings on internal bulletin boards, internet advertisements, printed flyers distributed at job fairs, and newspaper advertisements".
Any advertisement for a job, promotion, or transfer opportunity in New York City is covered under the New York City Pay Transparency law.
Update: Recent amendments have also added a definition for "advertising", defined as "to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity".
Penalties for Non-Compliance
Employers will not be assessed a civil penalty for the first offense to NYC Pay Transparency, provided that the employer shows they have fixed the violation within 30 days of receiving a notice from the Human Rights Commission.
If the violation goes unfixed, businesses may be fined up to $250,000. The same fine may be incurred for any following violations.
Businesses that violate the new law may also be subject to:
- Monetary damages to affected employees
- Amend advertisements and postings
- Create or update policies
- Conduct training
- Provide notices of rights to employees or applicants
- Engage in other forms of affirmative relief
Get Help With New York Pay Transparency
Employers are encouraged to review compensation structures before the commencement of the law on September 17, 2023.
New York businesses that are struggling with the new pay transparency law may want to consider reaching out to a New York HR Services Provider for help.
To get help with New York Pay Transparency, or to learn more about our compliance and talent acquisition services, contact us today.