Employers with job postings in New York should be ready to update their job postings to ensure compliance with the New York’s Salary Transparency Law, which takes effect on Sunday, September 17, 2023.
The Law
Under the New York Salary Transparency Law, any job posting for a position that will be either performed in New York State, or “that will physically be performed outside of New York but reports to a supervisor, office, or other work site in New York,” must include in its advertisement:
- the compensation or a range of compensation for such job, promotion, or transfer opportunity; and
- the job description for such job, promotion, or transfer opportunity, if such description exists.
These requirements apply to both external job advertisements and to internal job postings. For postings that list a range of compensation, employers must provide 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 the posting of an advertisement for such opportunity.
Covered Employers
This law applies to all employers that have four or more employees or one or more domestic workers.
Commissions
For job positions that are based entirely on a commission, employers must only include “a general statement that compensation shall be based on commission.” However, this disclosure would not be sufficient if a role’s compensation was based partially on commissions and partially on set wages.
Enforcement
Enforcement of the New York Salary Transparency Law is done exclusively through the New York Department of Labor. Failure to comply with the salary transparency requirements may result in civil penalties between $1,000 and $3,000 per violation. Additionally, employers may not refuse to interview, hire, promote, employ, or otherwise retaliate against an applicant or current employee from exercising any rights under this section.
Steps Employers Should Take Now
Employers in New York or with job postings that report to either a supervisor or worksite in New York should start reviewing their pay practices and job postings now to ensure compliance on September 17th. Employers are encouraged to have systems in place to review all advertisements and update job posting templates to include a salary range. Also, although not required, as a best practice, employers should ensure that they create and maintain records outlining the good faith salary range that an employer intends to pay for any positions in New York.
Employers with questions about NYC Salary Transparency Law, or any other concerns should contact the attorneys in Forchelli Deegan Terrana LLP’s Employment & Labor Department.