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June 2022: New York State Pay Transparency Bill Passes Both Houses

21 Jun

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Update Applicable to:
All employers with four or more employees in the state of New York.

What happened?
On June 3, 2022, the New York State Legislature passed Senate Bill 9427 (SB 9427), which, if enacted, would require employers to include a salary range and position description in each job advertisement.

What are the details?
Effective 270 days after the signature from Governor Hochul, employers will be required to include the compensation or a range of compensation for any job, promotion, or transfer opportunity being advertised. If a job is paid solely on commissions, employers can comply with “a general statement that compensation shall be based on commission.”

This information must be included for any job that “can or will be performed, at least in part,” in New York state. On its face, therefore, the bill could be read to cover even fully remote positions where an applicant could conceivably work from home in New York state. 

Although the New York State bill mirrors the recent New York City law in several ways, there are slight differences. Below are the differences that employers should be aware of, including: 

  • Content of notice. The NYC law requires that a salary range be posted, meaning a minimum and a maximum. The state law, on the other hand, will allow just one salary amount on the posting. Neither the NYC law nor its guidance contemplates positions that are paid solely on commission, as the state bill does.
  • Potential remedies. Under the state bill, an employer deemed noncompliant with the law will be subject to civil penalties, up to $1,000 for the first violation, up to $2,000 for the second violation, and up to $3,000 for a third or subsequent violation. The revised NYC law, on the other hand, provides that upon first violation of the law, an employer will not be subject to a civil penalty and will have 30 days to cure the violation. Subsequent violations are subject to civil penalties up to $125,000, or up to $250,000 if the act was willful, wanton, or malicious. 

For more information, please see the links below:

Senate Bill 9427 (SB 9427)

NYC Salary Transparency Guidance

Article 1Article 2

What do employers need to do?
Employers should review the links provided above and prepare to make adjustments to all job postings for all potential applicants externally and internally within the organization once the bill has been signed by Governor Hochul.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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