New York State has implemented a new requirement for employers to enhance pay transparency in job advertisements. This law, which came into effect on Sunday, mandates that employers include both the minimum and maximum annual salary or hourly wage range for a given position in any job listing. This regulation applies to all employers with four or more employees and encompasses both internal and external job advertisements.
Furthermore, this legislation extends its reach to encompass remote employees who may work outside of New York but are under the supervision or reporting structure of a supervisor, office, or worksite based within the state. However, it is important to note that the law does not impose these requirements on government agencies or temporary help firms.
Reflect the employer’s good-faith estimates
This measure, known as the Pay Transparency Law, was signed into law by Governor Kathy Hochul in the previous year. Employers were granted a 270-day preparation period from the law’s signing date on December 21, 2022, to adapt to these new guidelines.
The salary range specified in job advertisements should reflect the employer’s good-faith estimates of the minimum and maximum annual salaries or hourly rates relevant to the position at the time of posting.
The primary objective of this law, as outlined by the New York State Department of Labor, is to provide job seekers with transparent and upfront information about compensation. Additionally, it aims to address and rectify systemic issues related to pay inequity and discriminatory wage-setting and hiring practices.
Law is applicable to jobs performed within the state
This initiative follows a similar law that was implemented in New York City on November 1, 2022. The New York City law required employers within the city to include the minimum and maximum starting salary in job listings, including those for promotions or transfer opportunities.
Employers found in violation of the Pay Transparency Law could face penalties, which may include fines of $1,000 for a first violation, $2,000 for a second violation, and $3,000 for any subsequent violations, according to labor and employment law firm Ogletree Deakins.
It is important to emphasize that the Pay Transparency Law applies not only to employers but also to agents and recruiters involved in the job advertisement process. However, it excludes job advertisements from temporary help firms. Additionally, the law is applicable to jobs performed within the state of New York or by workers who report to an office or supervisor located in New York.