New York joined several other states in passing laws that promote wage transparency. Forcing employers to include pay ranges in job postings was intended to reduce discrimination and help close the wage gap in the job market. For employers, the new law may help streamline hiring. However, violations could result in thousands of dollars in civil penalties.
Our New York employment attorneys explain some of the important impacts New York’s wage transparency law will have on employers and employees.
What Is New York’s Wage Transparency Law?
Legislation S.9427-A/A.10477 was signed by Governor Kathy Hochul on December 21, 2022. The Act amended state labor laws to establish statewide wage transparency for New York State. Among other provisions, the law requires employers to list salary ranges when they post job openings. The law became effective September 17, 2023.
Some key provisions for employers and employees to know include:
- The law applies to employers with four or more employees.
- Job postings must include a description of the job if one exists.
- Employers must disclose the minimum and maximum hourly wage or annual salary for job postings.
- The requirement applies to external and internal postings, including electronic postings, which advertise a job, transfer, or promotion to potential applicants.
- Compensation must also be included for postings offering transfer opportunities and promotions.
- The law applies to recruiters and agents but not temporary help firms.
Many cities have enacted wage transparency laws, including New York City, Ithaca, and Albany County. The statewide law does not replace or preempt local rules, laws, or regulations.
Employers need to be aware that the law applies to workers outside of New York State who report to a supervisor or office in New York. Employers can be fined $1,000 for the first violation of the law. The civil fine increases to $2,000 for a second violation and $3,000 for the third or subsequent violations.
How Does the Wage Transparency Law Impact Employers in New York State?
Employers must review their job postings to ensure compliance with the new law. They must also implement procedures to ensure all future job postings comply with requirements, including the guidelines for drafting pay ranges for job postings.
Employers may need to seek legal advice regarding compliance in multiple states because several states have implemented similar laws. Cross-jurisdictional compliance could be an issue.
How Does the Wage Transparency Law Impact Employees in New York State?
The law intends to create fairness for job applicants. It also ensures employers are transparent about the compensation for specific job descriptions. The law also prohibits employers from retaliating against employees for discussing their compensation with coworkers. In the past, many companies have prohibited employees from discussing their compensation.
Employees who believe they have experienced a violation of the wage transparency law can file a complaint with the New York State Department of Labor. Employers are prohibited from retaliating against employees and applicants who file complaints.
Contact Our New York Employment Attorneys
The new wage transparency law in New York could significantly impact you and your company. Contact Lipsky Lowe LLP to meet with a New York employment attorney to discuss how the law will apply, given the specific factors of your situation.