New York State & New York City Pay Transparency Legislation

May 12, 2022 the Salary Transparency Law was enacted in New York City, which was postponed to the effective date of November 1, 2022. 

“In addition to employers, 134-A specifies that employment agencies, and employees or agents thereof, must also include a salary range or hourly wage range in each advertised position, promotion, or transfer opportunity. Job advertisements for “temporary employment at temporary help firms” are still exempted from the law. Temporary help firms are defined as businesses that recruit and hire their own employees and assign those employees to perform work at or perform services for other organizations or businesses.” (Littler)

1. “The civil penalty for the first violation will be $0 if the employer cures the violation within 30 days of receipt of a complaint. The proof of cure may be submitted either electronically or in person and is deemed an admission of liability by the employer.
2. In line with the recent CCHR guidance (which has now been updated), the law would apply to job listings for both salaried and hourly positions, and would not apply to any position “that cannot or will not be performed, at least in part, in the city of New York.”
3. While an individual may only file a lawsuit based on a violation arising from an advertisement by their current employer, any aggrieved person may file a complaint with the Commission, regardless of whether the alleged violator is the grievant’s current employer.” (Bond)

New York Wage Transparency Law

As assumed, on June 3, 2022, New York State passed a similar law on wage transparency. 

“the new law would require covered employers to disclose compensation or a range of compensation to applicants and employees upon issuing an employment opportunity for internal or public viewing, or upon employee request. The Bill is intended to enhance transparency around compensation and reducing any existing wage disparities among employees.

The Bill defines a covered employer as: (i) “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;” and (ii) “any person, corporation, limited liability company, association or entity acting as an employment agent or recruiter, or otherwise connecting applicants with employers, provided that “employer” shall not include a temporary help firm” as the term is defined under New York Labor Law Section 916 (5).

The Bill requires covered employers to disclose the following information in job postings, including for promotions and transfer opportunities, that can or will be performed at least in part in the State of New York:

1. The compensation or a range of compensation for such job, promotion, or transfer opportunity; and
2. The job description for such job, promotion, or transfer opportunity, if such description exists.

For positions that are paid solely on commission, compliance with the law’s compensation disclosure requirements can be achieved by providing a written general statement that compensation shall be based on commission.

Additionally, the new law would prohibit employers from refusing to interview, hire, promote, employ or otherwise retaliating against an applicant or current employee for exercising their rights under new Section 194-b. The law would allow individuals aggrieved by a violation to file a complaint with the NYS Department of Labor (NYSDOL). Violations of the any of the requirements of the new law or any subsequently published regulations could result in a civil penalty pursuant to NY Labor Law Section 218 which generally provides civil monetary penalties for non-wage related violations ranging from $1,000 to $3,000, to be assessed by the NYSDOL.

Under the new law, covered employers would also be required to maintain records of compliance, including but not limited to the history of compensation ranges for each job, promotion or transfer opportunity as well as the job descriptions for such positions (if applicable).” (Bond)

If enacted, the proposed bill would take effect 270 days after it becomes law.

These are simple changes to make when posting for openings and recruiting.  Ensure that you are communicating the anticipated changes throughout your organization.  Continue to monitor for any upcoming changes or modifications to the proposed legislation.  These changes are a trend nationally.