New York Passes Bill Requiring Compensation Ranges in Job Postings

Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

On June 1, 2022, the New York State Legislature passed Senate Bill S9427A, which would amend the New York Labor Law (NYLL) by requiring that employers disclose compensation ranges in job, promotion, and transfer advertisements. This bill comes on the heels of New York City’s recent enactment of a similar law. While New York City’s salary disclosure law is set to take effect on November 1, 2022, the statewide law would go into effect 270 days after being signed into law. Eyes are now on Governor Kathy Hochul as we await her action on the bill.

The bill would require all employers with “four or more employees” to include “the compensation or a range of compensation” for any job advertisement “that can or will be performed, at least in part, in the state of New York.” The bill would define “range of compensation” as “the minimum and maximum annual salary or hourly range of compensation” for the specific job. Employers would be permitted to set this minimum and maximum based on what they “in good faith believe[]” the highest and lowest range would be at the time of the advertisement. As with the New York City law, employers would also be required to include this range in any advertisements for internal promotions or transfers.

In a departure from the New York City law, the statewide law would require that any posting for an individual who is going to be paid solely on a commission basis contain a general statement that the compensation would be based on commission. Moreover, if a job description for the posted position exists, the employer would also be required to include the description in the advertisement.

While the bill would apply to employers that act as “employment agent[s] or recruiter[s],” the bill would not apply to temporary help firms. If the law becomes effective, employers that violate the law would be subject to civil penalties of $1,000 for a first violation, $2,000 for a second violation, and $3,000 for a third or any subsequent violations.

Employers statewide may wish to review these requirements and begin thinking about comporting their practices with the obligations articulated in the bill. If the statewide bill becomes law, there is certainty that New York City’s law will go into effect well before the statewide law does. Given this overlap, employers in New York City may want to be sure that their practices align with both state and city requirements.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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