Attention Employers: New York State Pay Transparency Law Goes Into Effect September 17, 2023

New York State’s new pay transparency law, including certain clarifying amendments, will go into effect on September 17, 2023.

The new pay transparency law requires that employers with four or more employees in New York State disclose the compensation or range of compensation proposed to be paid to candidates for any position that will “physically be performed, at least in part, in the state of New York, including a job, promotion, or transfer opportunity that will physically be performed outside of New York but reports to a supervisor, office, or other work site in New York.” In other words, the law expressly applies to certain remote positions, but does not apply to remote work opportunities performed entirely outside of New York with no supervision of the position from within the state of New York. 

Individuals who claim to be aggrieved by an employer’s failure to post salary ranges or job descriptions in job postings can file a complaint with the Commissioner of Labor. Employers may be subject to civil penalties for failure to comply. Unlike the New York City law, the State law does not provide a private right of action for current employees or applicants. Even without the threat of a lawsuit, however, employers should take steps to comply with regulations and guidance in order to avoid civil penalties and negative publicity.

Our Labor & Employment Team is available to provide legal advice and counseling related to pay transparency and job advertising-related issues, as well as any other employment law questions you may have.

For more details regarding this legislation, download our Client Alert below.