Employers will need to comply by 9/17/2023
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As HR One reported in January, New York lawmakers passed a new pay transparency law that is scheduled to take effect on September 17. As that date has approached there has been additional clarification and guidance from the state on what employers will need to do in order to comply with the law. In fact, there were some amendments made to the original law, and so as the implementation date gets closer, HR One is providing the following information on the law and what employers need to be doing in order to comply.
The Basics
The pay transparency law applies to employers with four or more employees. It will require any advertisements or postings for open jobs or promotion opportunities to include a compensation range or pay rate for the position. Employers must also disclose a job description, if one exists, for the position.
What counts as an advertisement?
Under the law, “advertise” means to make a written description of an employment opportunity available to a pool of potential applicants for internal or public viewing, including electronically. So this covers a host of job listings, websites, newspaper help wanted ads, social media posts, and more.
What is a compensation range?
The compensation range is the highest and lowest annual salary or hourly wage that an employer believes in good faith to be accurate at the time of posting.
Does this apply to out-of-state jobs and positions? What about remote work?
The law applies to any position performed physically in New York (even if the worker is remote but in-state) or if the position reports to an office or supervisor in New York.
Are there record-keeping requirements?
While there were record-keeping requirements in the original version of the law, in the amended version, those were removed. However, as a best practice, it is important for employers to maintain records on the compensation ranges advertised and the job descriptions for those positions.
What are the state’s requirements for the job descriptions?
Currently, there is no specific formatting or information that must be included on a job description under the terms of the law. However, best practices dictate that a job description should address/include, but are not limited to, the following:
HR One can help employers create well-developed job descriptions, either for the positions being advertised or for all positions within a company.
So much recruiting is done online… Does every post on every platform need to include this information?
HR One strongly encourages employers to make a good-faith effort to include this information in every job post. Most job posting services, including on platforms such as Indeed and LinkedIn, provide a field for employers to include compensation information.
One way employers can exercise control is by posting the open positions on the organization’s website that includes the required information, and linking back to this whenever posting the job elsewhere.
What are the penalties for non-compliance?
Under the terms of the law an employer can be fined up to $3,000 per violation, depending on the organization’s size, the nature of the violation, and the presence of good-faith efforts to comply.
If you have specific questions regarding the law or would like more information on how HR One can assist your organization with compliance, please don’t hesitate to contact your consultant or our office.