Governor Hochul Signals New York State Salary Range Disclosure Law
On December 21, 2022, Governor Hochul signed legislation that will require employers in New York to disclose salary or hourly pay ranges for all job advertisements and promotions. This law, which is now part of New York's Labor Law (Section 194-b), will take effect on September 17, 2023. This follows New York City's implementation of a similar pay transparency law on November 1, 2022.
For more information relating to New York City’s pay transparency law, please see Kane Kessler’s legal alert on the subject at https://www.kanekessler.com/firm-publications/new-york-city-to-require-salary-ranges-in-job-postings/.
Under the new statewide law, employers in New York with four or more employees, as well as employment agencies (excluding temporary help firms), must include in any job advertisement, promotion, or transfer opportunity the minimum and maximum annual salary or hourly range of compensation that the employer believes to be accurate at the time of posting. Additionally, employers must provide the job description for each such job, promotion, or transfer opportunity, if such description exists. The law also prohibits employers from retaliating against applicants or employees for exercising their rights under this section. Employers are also required to keep and maintain records of compensation ranges for each job, promotion, or transfer opportunity, and the job descriptions for such positions, if such descriptions exist.
Compliance Obligations for Employers and Penalties for Non-Compliance
Employers who fail to comply with the new law may be subject to civil penalties. The penalties for a first violation can be up to $1,000, for a second violation up to $2,000, and for a third or subsequent violation up to $3,000. The amount of the penalty will be determined by factors such as the size of the employer, their level of good faith, the severity of the violation, and if the employer has violated the law before. The law does not provide for a private right of action, but individuals can file a complaint with the New York State Department of Labor.
New York City's wage transparency law went into effect on November 1, 2022, and other areas within the state have passed similar legislation. The state law acts as a supplement to cover areas without local laws and does not supersede or preempt any local laws, rules, or regulations. Employers should be aware of their new obligations under the state law and conduct an equal pay audit, assess policies for determining salaries and compensation, revise job postings, develop a process to consistently publish wage range for all postings, review application and interview protocols, and conduct surveys of competitors' postings to ensure compliance. The attorneys at Kane Kessler's Labor & Employment Practice Group can assist companies with compliance issues and navigating the requirements of the wage transparency law. If you have any questions, please contact Kane Kessler's Labor & Employment Practice Group.
REFERENCE:
United States: New York State Salary Range Law Implementation
https://www.mondaq.com/unitedstates/employee-benefits--compensation/1271960/new-york-state-salary-range-law-implementation
NEW YORK STATE SALARY RANGE LAW IMPLEMENTATION
https://www.kanekessler.com/firm-publications/new-york-state-salary-range-law-implementation/?utm_source=mondaq&utm_medium=syndication&utm_term=Employment-and-HR&utm_content=articleoriginal&utm_campaign=article
