New York State Passes Pay Transparency Law

On December 21, 2022, New York State Governor Kathy Hochul signed into law a new Pay Transparency Law (legislative bill S.9427-A/A.10477) that will require all employers with at least 4 employees to provide the minimum and maximum salary or hourly rate in every job posting.

This includes internal and external announcements for job vacancies, promotions, and transfer opportunities. New York became the third state to enact such a law in 2022, as Washington and California have enacted similar requirements. The law is also similar to the New York City ordinance that was passed on January 15, 2022, that required NYC employers to post the salary/hourly range with every new job posting. The state law also goes a bit further than the city ordinance in that it requires employers to disclose the applicable job description (if one exists) and maintain “necessary records” that can prove the employer is compliant with the law.

There is likely to be further guidance from the New York State Department of Labor, however, employers should take steps to meet the requirements of the law. Recommended first steps that employers should take now include: implementing recordkeeping practices to maintain evidence of compliance and reviewing job descriptions for all roles to ensure accuracy and completeness. As the push for pay transparency continues, organizations should also evaluate their pay equity and overall pay practices to be able to explain their pay ranges, address applicant and employee questions about specific pay, and ensure equitable practices when setting pay.

Pay transparency laws are an ongoing trend. Pay Transparency research has demonstrated that organizations that post their pay ranges may experience an increased level of trust by employees. Increasingly, applicants consider the availability of pay data when deciding whether they apply for a position. Organizations that embrace pay transparency may also see narrowing pay gaps between demographic groups.