Under the new law, private employers with at least four employees must comply with its provisions. They mystify the minimum and maximum annual salary or hourly compensation range in all job postings and advertisements, whether for a transfer opportunity, promotion, or job that will be partially performed within New York. Although the law initially included remote out-of-state workers, the recent amendment limits its application to jobs performed in New York unless the out-of-state worker reports to a New York-based supervisor or work location.
The pay transparency requirements apply to both internal and external job postings, and covered employers must have a good faith belief that the disclosed salary range is accurate at the time of posting. For commission-based jobs, a statement indicating that compensation is based on commission satisfies the employer's obligation to reveal a salary range.
Additionally, the new law imposes a record-keeping responsibility on employers, who must maintain records indicating compliance with the law. While the obligation to keep a record of compensation ranges for each job was removed, employers are encouraged to keep such records.
New York City employers must still comply with the Pay Transparency Law enacted on November 1, 2022. The New York State Pay Transparency Law does not preempt local ordinances, so New York City employers are required to comply with both laws.
New York employers should review job postings and advertisements to comply with all pay transparency laws. They should also review their recordkeeping procedures and maintain a record compensation record for each posted position if needed.
