Pay Transparency in New York

In an effort to address wage gaps, twelve jurisdictions across the nation have enacted pay transparency legislation with New York being the most recent state. The New York pay transparency law, Bill No. S9427A, will go into effect on September 17, 2023. This law will apply to any advertisement, promotion, or transfer opportunity that will either be physically performed at least in part in New York, or that will physically be performed outside of New York but reported to a supervisor, office, or worksite in New York. Such legislation requires employers, with four or more employees, to publicly disclose salary ranges or a fixed level of compensation in job postings for positions within the state. The New York state law would also require employers to keep records of the compensation ranges for each position and the job descriptions. If the position is commission-based, employers can satisfy this by disclosing that in the job description. The legislation also includes an anti-retaliation provision against applicants and current employees for exercising their rights under the pay transparency law. The legislation does not explicitly create a private right of action and violations are subject to investigation and prosecution by the Commissioner. Civil penalties would not exceed $1,000 for the first violation, $2,000 for the second violation, and $3,000 for the third and further violations.

There are lingering questions in regard to whether the law applies to employers with four employees in New York, or four employees total including ones outside the state. In the legislation, there is no specific length of time mentioned for employers to retain records of compensation ranges and job descriptions. The New York Department of Labor may issue further guidance to answer these questions.

If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.