Pay Transparency Law Takes Effect September 17

Pay Transparency Law Takes Effect September 17

July 27, 2023

Beginning September 17, 2023, all New York employers with at least four employees, and most full-time employment agencies, must disclose the minimum and maximum annual salary or hourly range of compensation for advertised jobs, promotions, or transfers.

The Pay Transparency Law (PTL) covers both internal and external job postings. Many employers have wondered if the law will apply to postings seeking remote workers. The answer is yes. The PTL will also apply to not only those workers that work remotely within New York State, but also to employees out of state working remotely who report to a boss working within New York.

 Under the PTL, the employer must make such salary disclosures based on the employer’s good faith belief in the accuracy of the information disclosed at the time the advertisement is posted.

Anecdotally, the impending law is already having an impact. Searches of popular job posting websites return a higher-than-normal number of jobs with a salary range included. This is in line with data reported by Fortune Magazine, which cited a nearly 26 percent jump in the number of job postings that include a salary range nationwide.

The PTL contains anti-retaliatory provisions and does not supersede or preempt any provisions of local law, rules, or regulations, including New York City’s more stringent “Salary Transparency Law” effective as of November 1, 2022.

In the event the Commissioner of Labor determines that an employer has violated the PTL, such an employer is subject to a civil penalty pursuant to Section 218 of New York’s Labor Law.

Should you require additional information about this or any other provision of New York’s dynamic Labor Law, or if your company has concerns about current employment policies, feel free to contact any member of our labor and employment team.

To read the current statute, click here.

Kevin counsels employers on recent developments in employment law, and the implementation of policies and procedures which enable employers to be in compliance with federal and state laws. He can be reached at 716-854-4300 ext. 292 or [email protected]