January 2023: Governor Hochul Signs New York Pay Transparency Bill Into Law

03 Jan

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

What happened?
On December 21, 2022, Governor Kathy Hochul signed S.9427-A/A.10477 (the “New York Pay Transparency Law” or “NYPTL”), a pay transparency law that will affect most employers who do business in the state of New York.

What are the details?
Effective September 17, 2023, covered employers in New York State will have pay transparency obligations related to job advertisements under the new legislative bill.

Covered Employers
Employers with at least four employees and employment agencies (excluding temporary help firms as defined under Section 619 of the Labor Code) are considered covered employers.

Employer Obligations
Covered employers must include in any advertisement for a job, promotion, or transfer opportunity the minimum and maximum annual salary or hourly range of compensation that the employer, in good faith, believes to be accurate at the time of the posting. This is similar to the amended New York City ordinance. However, the state law goes one step further and requires employers to disclose the applicable job description if one exists, which is not required under the New York City ordinance.

A general statement that compensation will be based on commission may satisfy the disclosure requirement for commission-only positions.

The state law will also require employers to keep and maintain necessary records to evidence compliance with the statute, including, but not limited to, the history of compensation ranges for each job, promotion, or transfer opportunity and the job descriptions for such positions, if they exist. This is another distinction from the New York City ordinance, which does not have a record-keeping requirement.

For more information, please see the links below:

S.9427-A/A.10477

Article 1Article 2

What do employers need to do?
Employers should review the links provided above and make adjustments to their job and position advertisements to comply with the law once it goes into effect on September 17, 2023.

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