9.6.23 Advocacy Alert: Preparing for Pay Transparency
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September 25, 2023
This month, a new law regarding pay transparency will take effect in New York. All employers should prepare to comply with this law. Get answers to frequently asked questions below.
What does the law require?
The law requires employers to disclose the compensation (salary or wage) or range of compensation in any advertisement for a job, promotion, or transfer. Job descriptions must also be included.
When does the law take effect?
September 17.
Who does this apply to?
The law applies to employers with four or more employees. Additionally, anyone acting as an employment agent or recruiter.
What is an acceptable range?
Under the law, the range should be “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 the posting of an advertisement for such opportunity.”
How does this apply to remote workers?
The Legislature clarified that this law applies to jobs that will be physically performed in New York (at least partially), or any job that “reports to a supervisor, office, or other work site in New York.”
What is the penalty for noncompliance?
The law does not include a private right of action, but individuals can file complaints with the NYS Department of Labor if they spot a job posting that does not include a range. The law authorizes NYSDOL to assess fines for noncompliance:
- $1,000 for the first offense;
- $2,000 for the second offense;
- $3,000 for the third and beyond.
What about commissioned workers?
For jobs that pay solely commissions, advertisements only need “a general statement that compensation shall be based on commission.”
Full bill text is available here, with related clarifying amendments here.
Further questions? Email JVeronica@thepartnership.org.
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