As of September 17, 2023, New York State employers are required to comply with New York State Labor Law Section 194-b. This new law requires employers with four or more employees to include a range of compensation and job description (if such a description exists) for all advertised job opportunities, promotions, or transfers that will physically be performed in New York – and for those that are physically performed outside of New York that report to a supervisor, office, or other work site within New York. These compensation ranges are to consist of the minimum and maximum annual salary or hourly rate of compensation that an employer believes in good faith to be accurate at the time of posting. If a position is based on a commission payment methodology, an employer shall include a general statement that compensation shall be based on commission. Further, employers are prohibited from retaliating against employees who discuss compensation with coworkers.
“Employers,” as defined by the statute, shall include, for example, the following: “any person, corporation, limited liability company, association, labor organization or entity employing four or more employees in any occupation, industry, trade, business or service, or any agent thereof.” Further, employment agents and recruiters, not including temporary help firms, are also subject to New York State Labor Law Section 194-b.
“Range of compensation,” as defined by the statute, is the “minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity.” This range of compensation is provided in good faith by the employer at the date of the advertisement posting.
“Advertise,” as defined by the statute, means to “make available to a pool of potential applicants for internal or public viewing, including electronically.” The New York State Department of Labor has recently developed some guidance materials relating to the new legal requirements – and they can be located at https://dol.ny.gov/pay-transparency. One of the guidance documents is entitled “Pay Transparency Law for Employers” and it provides examples of covered advertisements such as: “newspaper ads, printed flyers, social media posts, website postings, anything sent to an electronic mailing list, and emails sent to a pool of more than one applicant.”
Additionally, the New York State Department of Labor has also issued proposed regulations, which are subject to a 60-day public comment period. This 60-day period will end on November 13th, 2023. To submit a comment, please email email@example.com.
In conclusion, employers in New York should be prepared to have all job advertisements include a range of compensation and job description for designated job opportunities, promotions, and transfers. Employers should also consider whether their job advertisements may be subject to other, similar pay laws, as pay transparency laws have popped up in several jurisdictions. For example, a federal salary transparency bill was introduced in March 2023, but has not seen any significant activity since.
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This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2023 Law Offices of Pullano & Farrow PLLC