On September 7, 2021, New York Governor Kathy Hochul signed an amendment to the New York State Pay Transparency Law. This amendment modifies the applicability of the law, lessens an employer’s record-keeping requirements, and clarifies what constitutes an advertisement. The new law will impact a wide range of businesses in New York State.
The amendment modifies the New York State Pay Transparency law in three crucial ways. Firstly, it lessens an employer’s record-keeping requirements. It eliminates the requirement to maintain documents related to the “history of compensation ranges for each job, promotion, or transfer opportunity, and the job descriptions for such positions.” This change will ease the compliance burden on employers, allowing them to focus more on other essential aspects of their operations. Secondly, the amendment clarifies what constitutes an advertisement. Thirdly, the amendment modifies the applicability of the law for certain jobs and positions.
Background on Pay Transparency Laws
The New York State Pay Transparency Law amendment follows other states and cities such as California, Washington, and New York City, that have similar pieces of legislation. Pay transparency laws generally require covered employers to include a good-faith minimum and maximum annual salary or hourly range of compensation in any advertisement for a job, promotion, or transfer opportunity, among other requirements.
Requirements of Pay Transparency Laws
Pay transparency laws aim to promote wage equity and close the gender pay gap. By requiring employers to disclose salary ranges upfront, these laws help workers negotiate fair compensation and make informed career decisions. Additionally, pay transparency laws promote greater transparency in the hiring process and encourage employers to evaluate and adjust their compensation practices.
Effective Date and Requirements
The effective date for the Pay Transparency Law amendment remains unchanged, and employers must still include a job description in any job advertisement where such a description exists.
The amendment to New York State’s Pay Transparency Law provides greater transparency and accountability in the hiring process. By requiring employers to disclose salary ranges for certain positions, this amendment aims to reduce the gender wage gap and promote equitable pay practices. Additionally, the amendment has reduced the record-keeping requirement, which will ease compliance burdens on employers. Covered employers in New York, as well as those with operations in other states and cities, must ensure they understand the new requirements to maintain compliance.