Governor Hochul signs New York State’s first statewide ‘pay transparency’ law

On December 21, 2022, Governor Kathy Hochul signed legislation aimed at improving “pay transparency,” which will dramatically affect employers’ job advertisement practices across New York State.

Requirements of the new law

The legislation, which is scheduled to take effect on September 17, 2023, amends the New York Labor Law to include Section 194-b, titled, “Mandatory Disclosure of Compensation or Range of Compensation.”

Section 194-b will require employers with four or more employees to include the following in any advertisement for “a job, promotion, or transfer opportunity that can or will be performed, at least in part,” in New York State:

The compensation or “range of compensation” for the job, promotion, or transfer opportunity; and

A description for the job, promotion, or transfer opportunity, if one exists.

The term “range of compensation” is defined as “the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate” at the time of the advertisement.

Because both a minimum and a maximum are required, merely posting a “starting” or “mid-point” compensation level will be insufficient to meet the requirements. For positions that are paid solely on a commission basis, however, the law appears to be satisfied if the advertisement includes a simple statement that compensation shall be based on commission.