March 2023: New York Amends Statewide Pay Transparency Law

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

What happened?
In a previous communication, we notified you that Governor Hochul signed the New York Pay Transparency Law into law, which will go into effect on September 17, 2023. This is an update to that communication.

What are the details?
On March 3, 2023, Governor Kathy Hochul signed new amendments to the New York Pay Transparency Law (“NYPTL”) into law.

The pay transparency law required covered employers to include the following information in advertisements for internal and external “job, promotion, or transfer opportunities”:

1. The compensation or range of compensation (defined as “the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity”) that the employer in good faith believes to be accurate at the time of posting; and

2. The job description for the position, if one exists.

The amendments revise the type of advertisements that must include compensation information and a job description. Before the March 3 amendments, the NYPTL required employers to include such information in advertisements for jobs, promotions, or transfer opportunities “that can or will be performed, at least in part, in the state of New York.” Like the New York City Salary Transparency Law, that definition included both New York-based and fully remote positions. 

Following the March 3 amendments, however, the NYPTL provides that compensation information and a job description must be included in advertisements for jobs, promotions, or transfer opportunities “that will be physically performed, at least in part, in the state of New York, including a job, promotion, or transfer opportunity that will physically be performed outside of New York but reports to a supervisor, office, or other work site in New York.” Stated another way, advertisements for the following positions will now be covered by the NYPTL:

1. Those that will be physically performed in New York, even if only in part (e.g., hybrid positions or positions requiring periodic attendance in New York); and
2. Those that will be physically performed outside of New York but report – apparently at any level in the organizational chart – to a supervisor, office, or other worksites in New York.

The amendments also relaxed employers’ record-keeping requirements. Before amendment, the NYPTL required employers to “keep and maintain necessary records to comply with the requirements of the [NYPTL],” including compensation history and all job descriptions. However, the March 3 amendments eliminate this record-keeping requirement.

Finally, the amendments clarify the meaning of “advertise,” which is now defined in the NYPTL as “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.”

For more information, please see the links below:

Amendments

S.9427-A/A.10477 (Pay Transparency) 

Previous Vensure Communication (January 3, 2023)

Article

What do employers need to do?
Employers should review the links above and revise their compliance efforts associated with the NYPTL before September 17, 2023, effective date. In addition to analyzing compensation information and job descriptions, employers should also update and review relevant organizational charts to determine whether a position that may be advertised reports to a supervisor, office, or other worksites in New York.