On December 21, 2022, New York joined several other jurisdictions, including New York City, in enacting a compensation transparency law. All New York employers with four or more employees must begin complying with the law starting on September 17, 2023.
Section 194-b of the New York Labor Law now provides that no employer or its agent may advertise a job, promotion or transfer opportunity that can be performed, at least in part, in New York without disclosing: (1) the compensation or range of compensation for the position; and (2) a job description, if one exists. A “compensation range” is the “minimum and maximum annual salary or hourly range of compensation…that the employer in good faith believes to be accurate at the time of the posting of an advertisement….”
Where compensation is paid on a commission basis, an advertisement must make a general statement disclosing that fact.
Employers must maintain records evidencing their compliance with the new law, including but not limited to the history of compensation ranges and job descriptions for each position. They are also prohibited from refusing to interview, hire, promote, employ, or otherwise retaliating against, an applicant or employee for exercising any right under the statute.
A person who believes they have been aggrieved by a violation of Labor Law § 194-b may file a complaint with the Commissioner of the Department of Labor (“Commissioner”). The Commissioner will investigate such complaints and is empowered to award remedies pursuant to Labor Law § 196-a and impose civil penalties against the employer pursuant to Labor Law § 218.
In short, most New York employers have eight months to determine the applicable compensation ranges for any positions as to which the employer will advertise an opening, promotion or transfer. Additionally, employers will need to ensure that any written job descriptions are accurate and up-to-date. Employers that do not have job descriptions are not required to create them, but might consider doing so.
Employers should also be on the lookout for information about additional obligations as the law’s effective date nears, because Labor Law § 194-b directs the Commissioner to promulgate rules and regulations to effectuate the law. If you have questions about New York’s compensation transparency law, please contact Jessica M. Baquet at jbaquet@rmfpc.com or (516) 663-6506.