NEW YORK STATE AMENDS FORTHCOMING PAY TRANSPARENCY LAW
New York State recently adopted a salary transparency law, which will go into effect on September 17, 2023, and will require employers to disclose the pay range for any job that is advertised, including the pay range for internal promotion or transfer opportunities. Last month, A999/S1326 became law, amending the impending pay transparency law. As detailed below, the amendment modifies the scope of jobs covered by the law, eliminating its recordkeeping requirements. Perhaps the most notable aspect of the amendment is that it clarifies the scope of jobs covered.
The Amendment modifies the scope of the law, however, by specifying that the forthcoming law will instead apply to jobs that enter
(i) "will physically be performed, at least in part, in "New York State or
(ii) "will physically be performed outside of New York but reports to a supervisor, office,or other work site in New York.
In addition, the amendment eliminates the recordkeeping requirements of the initial version of the law, which would have required employers to maintain records related to each job, promotion, transfer, compensation, and job description. Notwithstanding this amendment, it remains a best practice for employers to maintain records concerning compensation, job descriptions, and position changes to demonstrate compliance with wage-and-hour laws, as well as to ensure appropriate recordkeeping in the event of a claim brought by an employee. Moreover, the amendment also incorporates a definition of "advertisement", which was absent from the initial version of the law.
Under the amendment, "advertisement" means to make available to a pool of potential applicants for internal or public viewing, including electronically a written description of an employment opportunity makes technical corrections. Prior to the law's effective date, employers should review their current and future job postings to ensure compliance with the updated salary transparency law. New York City employers should also take this opportunity to review their job postings and make any necessary changes for compliance.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
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