As discussed in our previous blog, New York recently enacted a Compensation Transparency Law (CTL) that is set to take effect on September 17, 2023. Generally speaking, the law will require employers to disclose salary ranges in advertisements for job, promotion and transfer opportunities.
On March 3, 2023, Governor Kathy Hochul signed off on a series of amendments to the CTL, which are summarized below.
The initial version of the CTL stated that the law applies to advertisements for a job, promotion or transfer opportunity that “can or will be performed, at least in part, in the State of New York.” As written, the CTL seemed to cover positions that would be performed outside of New York on a full-time remote basis so long as, in theory, those jobs could be performed in the state.
The amendments make it clear that the CTL does not apply to jobs solely because they “can” theoretically be performed in New York. Instead, the law applies to positions that are: (1) always physically performed in New York; (2) hybrid and involve the periodic performance of work in New York; and (3) fully remote and performed by an employee located outside New York if the employee reports to a person or workplace within the state.
The amendments also include a statutory definition of the word “advertise,” which means, “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.” Accordingly, it appears that salary ranges need not be disclosed if an opportunity within an organization is only disseminated verbally. This is commonly seen where the employment of a person in a managerial position ends and the employer simply asks others in the organization if they would be interested in a promotion to the vacant position.
Finally, the amendments eliminate the requirement in the initial version of the CTL that employers maintain records including, but not limited to, the history of compensation ranges for each job, promotion or transfer opportunity and the job descriptions for such positions, if they exist. As it currently stands, it seems there are no recordkeeping requirements associated with the CTL.
If you have questions about New York’s compensation transparency law, please contact Jessica M. Baquet at jbaquet@rmfpc.com or (516) 663-6506.