With the September 17, 2023, effective date for New York’s new pay range disclosure requirements approaching, state lawmakers recently amended the law to clarify the scope of remote jobs to which the law applies and to relieve certain information retention requirements for employers.
On March 3, 2023, New York Governor Kathy Hochul signed Senate Bill S1326, amending the new pay transparency law that will require employers to disclose minimum and maximum annual salaries or hourly wages in advertisements for jobs, internal promotions, or transfer opportunities. The amendments come just months after Governor Hochul signed the pay disclosure law in December 2022, six months after it was passed by the state legislature. The new amendments are set to take effect on September 17.
As originally passed, the pay disclosure law required covered employers to include pay ranges in postings for any jobs, promotions, or transfer opportunities “that can or will be performed, at least in part, in the state of New York.” The March 2023 amendments modify the language to state that jobs “will physically be performed” in the state. This seemingly focuses the requirements on job postings that will specifically be performed in New York.
Yet, the new amendments also expand the pay disclosure requirements to cover postings for remote workers outside the state who will report to an office or supervisor in New York. The amended pay disclosure requirements will now apply to jobs, promotions, or transfer opportunities “that will physically be performed outside of New York but report to a supervisor, office, or other work site in New York.”
Definition of “Advertise”
The amendments clarify what it means to “advertise” a job, promotion, or transfer opportunity that will require disclosure of pay ranges, making it clear that it applies to electronic job postings. The amendments define “advertise” as “make available to a pool of potential applicants” a “written description of an employment opportunity” both for “internal or public viewing, including electronically.”
The amendments remove the portion of the law requiring employers “keep and maintain necessary records” related to the pay disclosure requirements, “including, but not limited to, the history of compensation ranges” and job descriptions if they exist.
With the effective date of the pay disclosure law approaching later this year, employers may want to consider bringing their hiring and compensation practices in line with the law’s requirements and the subsequent amendments. Further, several cities and counties within New York have passed their own pay transparency laws with which employers in those jurisdictions may have to comply. In particular, New York City has recently proposed amendments to expand its pay disclosure law, which took effect in November 2022.
© 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume XIII, Number 81