Employers in New York State may soon be required to disclose a salary range in job postings to applicants and employees. New York’s S9427 was just sent to Governor Kathy Hochul’s desk, and if signed, employers in New York State will join employers in New York City (read more here), Colorado (read more here), and Washington State (read more here) in including wages in job advertisements. If signed by Governor Hochul, the law will be effective 270 days after signing.

If Governor Hochul signs S9427 in the current version of the law, employers advertising a job, promotion, or transfer opportunity that can or will be performed, at least in part, in the state of New York would be required to do the following:

  • Disclose the compensation or “range of compensation” for the job, promotion or transfer opportunity. “Range of compensation” is defined as the minimum and maximum annual salary or hourly range of compensation for a job, promotion, or transfer opportunity that the employer in good faith believes to be accurate at the time of the posting of an advertisement for such opportunity. For commission-based jobs, promotions or transfer opportunities, employers meet the compensation disclosure requirement by including a “general statement” in writing that compensation is based on commission
  • Include in the advertisement a job description for the position, if one exists.

Who would be covered?

The law would cover “employers,” defined as:

  • (i) Any person, corporation, limited liability company, association, labor organization or entity employing four or more employees in any occupation, industry, trade, business or service, or any agent thereof; and
  • (ii) Any person, corporation, limited liability company, association or entity acting as an employment agent or recruiter, or otherwise connecting applicants with employers.

However, temporary employment agencies are excluded from the current version of the law.

Recordkeeping

Employers would be required to keep and maintain necessary records to comply with the law’s requirements, including, but not limited to, the history of compensation ranges for each job, promotion or transfer opportunity and the job descriptions for those positions, if they exist.

Violations / penalties

If S9427 is signed into law, individuals claiming they have been harmed by a violation of the law would be able to file a complaint with the New York State Department of Labor Commissioner (the “Commissioner”). Employers violating the law would be subject to civil penalties in accordance with New York Labor Law § 218, and employers would be prohibited from refusing to interview, hire, promote, or employ-or otherwise retaliating against-applicants or current employees for exercising rights under the law.

Will there be clarification?

Under S9427, the Commissioner would be required to promulgate rules and regulations to effectuate the law indicating further clarification through rulemaking and regulations if the bill becomes law.

What’s next for salary disclosure laws?

Stay tuned for further developments on S9427. And watch our video chat The Proliferation Of Pay Transparency Laws: What US Employers Need To Know for a summary of current salary disclosure laws, the trends we’re seeing and pending legislation employers should keep an eye on, including California’s SB 1162.  As always, contact your Baker McKenzie employment attorney for help with your employment needs.