New York is the latest state to implement a pay transparency law that will allow job seekers to see salary ranges for open roles.
New York State’s Pay Transparency Law went into effect on September 17 and mandates that employers include minimum-maximum salary ranges that are believed to be in line with fair market compensation. This includes promotions and transfer opportunities. In addition to salary disclosure, employers must also include a job description.
The purpose of pay transparency laws
The law is designed to empower job seekers with important information up front and to address systemic pay inequity and discriminatory wage-setting and hiring practices, according to the state.
Pay transparency is one of the hottest trends in pay equity legislation. In November 2022, New York City joined a handful of other states with pay transparency laws. New York City’s law requires businesses or employers with at least four employees (including the owner) to list “good faith” salary ranges for any posting for a new job, promotion, or transfer opportunity for positions based in New York City.
According to the non-profit organization National Women’s Law Center, nearly 83.6 million workers in the U.S. could now be covered by pay range transparency laws.
New York’s law to cover remote workers
Prior to the governor signing the law, the law was amended to cover workers who perform their tasks outside of the state to accommodate the booming remote workforce.
“The statute increases the scope to cover postings for jobs that will be physically performed outside of New York, but will report to a supervisor, office, or other worksite in New York,” said Melissa Camire, an attorney with Fisher Phillips in New York City, in an article on the Society for Human Resource Management (SHRM). “Accordingly, if the position will be fully performed outside the state – even in a non-remote location — but will report to an office or manager in New York, the job posting will need to include the pay range. This puts a substantial burden on employers to consider the reporting structure of out-of-state job listings to ensure compliance with the amended law,” she added.
Learn more about New York state’s pay transparency law here.
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