New York is about to become the next state to implement a state-wide pay transparency law. This law, set to go into effect September 17, 2023, follows other similar legislation passed in specific New York regions like New York City and Westchester County. New York is among several other US states––including California, New York, Colorado, Hawaii, Washington, Maryland, Nevada, Rhode Island, and several other jurisdictions––that have passed laws requiring employers to disclose salary information in job postings.

Key Provisions of the Law

Under this new law, employers with four or more workers must comply with the following key provisions:

• Salary Disclosure: The law mandates the disclosure of the minimum and maximum annual salary or hourly range for all job opportunities. This applies to new job postings as well as internal promotions and transfers.
• Inclusion of Job Descriptions: If an employer has a job description for a particular role, it must be included in the job posting.
• Broad Scope: These requirements apply to in-state roles as well as remote positions that might be executed outside New York but are overseen by a supervisor or office within the state.

Ultimately, the law aims to increase transparency in the hiring process, around both compensation and understanding of the role, to empower potential employees with clear expectations right from the outset. This fosters a fairer, more informed application process.

Implications for Employers

The new state law has major implications for New York employers and their hiring practices. In addition to staying compliant to avoid fines, employers should use this opportunity to ensure their hiring and compensation practices are fair and up-to-date. Some considerations to keep in mind:

• Transparency and Trust: By mandating salary disclosures, the law fosters an environment of transparency. This can lead to increased trust between employers and employees, potentially boosting employer branding and attracting top talent.
• Equity Audits: With the spotlight firmly on pay transparency, employers are encouraged to conduct pay equity audits. Such audits can help identify and rectify disparities, ensuring that all employees are compensated fairly.
• Increased Accountability: The law brings with it increased scrutiny. Employers need to be diligent in their compensation practices, as any discrepancies can lead to potential claims under Labor Law §194.
• Adapting to the New Norm: Employers will need to revisit and possibly overhaul their hiring processes. This includes updating job postings, ensuring compliance in promotional and transfer opportunities, and training HR teams on the nuances of the new law.

This New York law is reflective of a broader trend across the US States like California, Colorado, and Illinois have already enacted similar laws, with others likely to follow suit. This series of new legislation represents major steps taken to bridge the pay gap and foster a more equitable work environment.

For employers, this law represents an opportunity to champion transparency, promote fairness, and position themselves as forward-thinking organizations in a rapidly evolving job market.

About Arbor

Arbor enables leaders to easily capture, analyze, and benchmark DEI and workforce outcomes. Arbor’s data analytics platform enables organizations to stay compliant with a range of regulatory reporting requirements, including new pay transparency laws.

Contact us at hello@findarbor.com to learn more about how our platform can help your organization easily stay on top of regulatory requirements.