The New York State Pay Transparency Law was signed into law on December 21, 2022, and will go into effect on September 17, 2023. The law requires employers with four or more employees in New York State to disclose the salary range for any job that is advertised or posted. This includes both full-time and part-time positions, as well as temporary and seasonal jobs. The law also applies to job postings for remote positions if the work is performed at least in part in New York State.
The purpose of the law is to promote pay transparency and to help close the gender pay gap. By requiring employers to disclose salary ranges, the law will give job seekers more information about what they can expect to be paid, and it will make it more difficult for employers to pay women and people of color less than white men for the same work.
The law has been met with mixed reactions. Some employers have expressed concerns that it will make it more difficult to attract and retain employees, while others have welcomed the law as a step towards greater pay equity. It remains to be seen how the law will impact the labor market in New York State.
The benefits for employers from the New York State Pay Transparency Law include:
Reduced Risk of Pay Discrimination Lawsuits
The law may help employers to avoid pay discrimination lawsuits by making it more difficult for employees to claim that they are being paid less than their peers for the same work.
Improved Employee Morale
Employees who feel that they are being paid fairly are more likely to be satisfied with their jobs, which can lead to improved morale and productivity.
Employees who feel that they are being paid fairly are less likely to leave their jobs, which can save employers money on recruiting and training costs.
To prepare to meet the requirements of the New York State Pay Transparency Law, employers should keep in mind that:
- Employers are required to keep records that show the history of compensation ranges for each job opportunity and the job description for that position.
- Applies to positions advertised externally and internally.
- The law was recently amended to address remote workers. The statute increases the scope to cover postings for jobs that will be physically performed outside of New York, but will report to a supervisor, office, or other worksite in New York.
- This could initiate requests for salary reviews by current employees.
Taking root nationwide, pay transparency continues to be the focus of pay equity legislation. Covered employers should start taking steps now to ensure compliance with the new pay transparency requirements beginning in September. Contact your HR Consultant for assistance in strategizing how to best comply with this law while meeting your business needs.