Following New York City’s enactment of a pay transparency ordinance on November 1, 2022, New York State has enacted a similar requirement for employers to list a range of compensation in advertisements for job, promotion, or transfer opportunities. The new state law could have a wide reach because it applies to all remote positions that can or will be performed, even in part, in New York state. In doing so, New York joins other states, including California, Colorado, and Washington, in imposing new pay transparency requirements upon employers. The new law goes into effect on September 17, 2023, 270 days after its passing.

The law applies to employers with at least four employees, as well as employment agencies or recruiters. However, temporary help firms are excluded from coverage. Covered employers are required to disclose in any advertisement for a job, promotion, or transfer opportunity the minimum and maximum annual salary or hourly range of compensation that the employer believes in good faith to be accurate at the time of posting. For positions that are commission-only, the employer must include a general statement that compensation will be based on commission to satisfy the disclosure requirement. These requirements are similar to the New York City ordinance passed earlier this year.

The New York State pay transparency law does impose certain additional requirements not found in New York City’s ordinance. Importantly, covered employers are additionally required to disclose the applicable job description, if one exists, in any advertisement for a job, promotion, or transfer opportunity and to keep and maintain necessary records to demonstrate compliance with the statute. These records may include the history of compensation ranges for each job, promotion, or transfer opportunity, as well as the job descriptions for the positions. Failure to comply with the requirements under this law may result in civil penalties ranging from $1,000 for an employer’s first violation to $3,000 for a third or subsequent violation. In addition, the State law does not preempt or supersede New York City’s ordinance, so employers could also potentially be subject to the far greater fines imposed by the city’s law.

As noted above, the statute applies to any jobs that can or will be performed, at least in part, in New York State, meaning that all listings for remote positions that can be performed from any location must comply with this statute, as the employee could reside in New York and work remotely from there.

With similar pay transparency laws spreading across the nation, all employers – especially those in New York and other affected states or who offer remote positions – should take several steps to address pay equity issues before such issues are brought to light by the new laws:

• Determine and document pay ranges for all positions

• Review employee compensation and address any pay disparities before disclosing a pay range

• Create, bolster, and publish compensation policies to ensure employees are aware of the legitimate justifications for any pay differences

• Gather and maintain pay records, including the history of compensation ranges and job descriptions for each job, promotion, or transfer opportunity

• Review existing job posting templates or create new templates consistent with the law’s requirements

• Carefully consider whether positions should be fully remote if disclosure of a compensation range is not desired

The New York State Commissioner of Labor is empowered to issue further regulations that may clarify the obligations and nuances of this new law. Meanwhile, covered employers are advised to review the new pay transparency laws in New York and across the nation to ensure compliance.