Employment Practices (September 13, 2023)

NY State’s pay transparency law, effective September 17, 2023, requires certain employers to disclose the compensation or range of compensation in advertisements for jobs, promotions, or transfer opportunities. A job description for the position must also be disclosed - if one exists.

The NY State pay transparency law applies to employers with four or more employees. This includes employers acting as employment agents or recruiters, or otherwise connecting applicants with employers, but excludes temporary help firms. Unlike the New York City law, independent contractors are not included in the employee count. Click here for more information on the NYC law.

The “range of compensation” that must be disclosed is the minimum and maximum annual salary or hourly rate that the employer in good faith believes is accurate at the time of the job posting. If the position is paid entirely on commission, a general statement that compensation shall be based on commission must be included in the advertisement. If compensation includes both commission and wages, the advertisement must include a general statement about the commission and the offered compensation or range of compensation for the wages.

The law applies to advertisements for opportunities “that will physically be performed, at least in part, in the state of New York, including a job, promotion, or transfer opportunity that will physically be performed outside of New York but reports to a supervisor, office, or other worksite in New York.”

Q: Does NJ have a similar state law?

A: While there are bills pending, NJ has yet to pass a state pay transparency law. One NJ city passed a law in 2022. Jersey City's pay transparency law applies to all employers in the city with five or more employees. Job postings by covered employers must include “a minimum and maximum salary and/or hourly wage, and benefits.”  Click here to read the Jersey City pay transparency ordinance.

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