New York Gov. Kathy Hochul has signed the New York Pay Transparency Law (S.9427/A.10477). The law, which was signed Dec. 22, 2022 and will take effect Sept. 18, 2023, will require most employers to provide salary ranges for all advertised jobs and promotions in New York. It is a requirement that already applies for those employers who operate in New York City.

As noted in our prior alert, beginning Nov. 1, 2022, all New York City employers with four or more employees and employment agencies regardless of their size, must provide a salary range or rate of pay when advertising a job, promotion or transfer opportunity. When the state law takes effect, New York City employers will need to comply with both state and city laws. However, when the state law becomes effective, it shall not supersede or preempt other municipal transparency laws, except the Westchester County Pay Transparency Law, which will become null and void when the state law becomes effective.

The New York State law requires employers to include certain information in any advertisement for a job, promotion or transfer opportunity that can or will be performed at least in part within the state. Employers must disclose the compensation or range of compensation, job description, and a general description of other compensation offered (e.g., fringe benefits, bonuses, stock options, commissions) in job postings.

The state law excludes from coverage temporary help firms that assign employees to other employers for short-term projects or seasonal work. Nonetheless, the law has broad-reaching impact and includes out of state employers who send employees to New York to perform work within the state.

In addition, the state law imposes a record-keeping requirement. Employers must keep the history of compensation ranges and any job description for each opportunity advertised for at least three years.

Under this new law, there is no right to file a private lawsuit in civil court for alleged violations. However, aggrieved individuals may file a complaint with the New York State Commissioner of Labor. Failure to comply with this new law can result in civil penalties of up to $3,000. The New York Commissioner of Labor is expected to promulgate rules and regulations related to the law prior to its effective date.

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