New York State has taken a significant stride toward pay equity with its statewide Pay Transparency Law (Labor Law Section 194-b). Effective September 17, 2023, this legislation impacts nearly all employers in the state, aiming to empower job seekers and employees with crucial compensation information. For companies hiring in or for New York, understanding and effortlessly addressing these regulations is key to avoiding penalties and attracting top talent.
Key Requirements of New York State Pay Transparency Law:
- Compensation Ranges in Advertisements: As of September 17, 2023, New York State requires employers with four or more employees to include the minimum and maximum annual salary or hourly compensation for all advertised job opportunities, promotions, and transfers.
- Remote Work Applicability: This includes positions performed in New York State or remote roles reporting to a New York supervisor or office, regardless of where the employee physically works.
- “Good Faith” Effort: The disclosed range must be what the employer “in good faith believes to be accurate” at the time of posting. If compensation is a single fixed rate or solely commission-based, this must be clearly stated. Open-ended ranges (e.g., “$20+ an hour”) are not allowed.
- Job Description Disclosure: If a job description exists, it must be included in the advertisement.
- Prohibition on Retaliation: Employers are prohibited from retaliating against employees or applicants who inquire about or discuss compensation.
- Recordkeeping: While initial versions of the law had broader recordkeeping, employers are generally expected to maintain records of compensation ranges and job descriptions to demonstrate compliance.
- Civil Penalties: Non-compliance can result in civil penalties of up to $1,000 for the first violation, $2,000 for the second, and $3,000 for third and subsequent violations.
How Datapeople Helps You Comply with New York State’s Law:
Datapeople’s platform is designed to streamline compliance with pay transparency laws like New York’s, ensuring your job posts are both effective and legally sound.
- Automated Pay Range Prompts: Datapeople detects if you’re creating a job post for a New York-based role (or a remote role reporting to NY) and will automatically prompt you to include the required compensation range, minimizing oversight.
- Location-Specific Guidance: The tool provides specific guidance tailored to New York’s regulations, helping you understand precise information needs, including fixed rates or commission-only statements, and ensuring ranges are “good faith” estimates.
- Consistency and Clarity: Datapeople helps standardize the presentation of salary information, ensuring your ranges are clear, consistent, and adhere to New York’s requirements, helping to avoid issues with overly broad or open-ended ranges.
- Streamlined Workflow: Datapeople helps embed compliance directly into your job writing process, so your team can focus on attracting talent rather than navigating complex legal texts.
- Reduced Risk: By guiding your team through the comprehensive disclosure process, Datapeople helps reduce the risk of non-compliance and associated fines, protecting your employer brand.
By leveraging Datapeople, you can confidently navigate New York State’s pay transparency landscape, attract a more informed applicant pool, and maintain a compliant and equitable hiring process.
Learn more about the broader landscape of pay transparency: