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On December 21, 2022, Governor Kathy Hochul signed S.9427-A/A.10477 (the “New York Pay Transparency Law” or “NYPTL”), a pay transparency law that will affect most employers who do business in the state of New York. The New York Pay Transparency Law will take effect on September 18, 2023.
The New York Pay Transparency Law amends the New York Labor Law to require covered employers to include the following information in advertisements for internal and external “job, promotion, or transfer opportunities”:
- The compensation or range of compensation (defined as “the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity”) that the employer in good faith believes to be accurate at the time of posting;
- The job description for the position, if one exists; and
- A “general description of other forms of compensation to be offered if applicable, including but not limited to fringe benefits, bonuses, stock options, or commissions.”
Employers are covered under the New York Pay Transparency Law if they have four or more employees, though the law is silent as to how many of those employees, if any, must work in the state of New York. Only employees must be counted for purposes of determining coverage. Employment agencies are covered by the New York Pay Transparency Law, but temporary help firms who recruit and hire their own employees to perform work for other organizations are expressly excluded from coverage. A job advertisement is covered under the New York Pay Transparency Law if it is for a position that “can or will be performed in the state of New York,” which applies to advertisements for fully remote positions that could hypothetically be filled by a worker in New York.
Violations of the New York Pay Transparency Law may result in civil penalties of up to $3,000. The New York Pay Transparency Law does not contemplate a private right of action, but individuals aggrieved by violations of the law (including applicants) may file a complaint with the New York State Commissioner of Labor. The New York Pay Transparency Law’s passage also has the effect of sunsetting Westchester County’s pay transparency law as of September 18, 2023.
In enacting the New York Pay Transparency Law, New York joins a growing number of states and municipalities with similar requirements. One such municipality is New York City, where the New York City Salary Transparency Law (“NYCSTL”) took effect on November 1, 2022. The state and city pay transparency laws have some key differences, which are summarized below:
| Feature | NYCSTL | NYPTL |
| Covered Employer | Employers with 4+ employees or domestic workers, so long as at least 1 works in New York City. Employment agencies covered. Temporary help firms not covered. | Employers with 4+ employees. Employment agencies covered. Temporary help firms not covered. |
| Individuals That Must Be Counted to Determine Employer Coverage | Employees, interns, independent contractors, and business owners. | Employees only. |
| Covered Job Advertisement | All internal and external advertisements for positions that can or will be performed, in whole or in part, in New York City. | All internal and external advertisements for positions that can or will be performed, at least in part, in the state of New York. |
| Information That Must Be Included in Job Advertisement | Minimum and maximum salary or hourly wage. | (1) Compensation or range of compensation; (2) Job description, if one exists; (3) General description of other forms of compensation to be offered. |
| Penalties for Violation | $250,000, but $0 for first violation with proof of cure within 30 days. | $3,000 |
| Private Right of Action? | Yes, for aggrieved employees only. | No, but aggrieved applicants and employees may file a complaint with the New York State Commissioner of Labor. |
The New York Commissioner of Labor is expected to issue regulations regarding the New York Pay Transparency Law prior to its effective date. We will continue to monitor any new developments and provide updates as they become available.
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