Effective September 17, employers with four or more employees in New York state must include a compensation range in all advertisements for new jobs, promotions and transfer opportunities. A pay transparency fact sheet and FAQ document are available on the NYSDOL website with additional information and guidance on the new law.
Overlap and City vs. State
Since November 1, 2022, per Local Law 32, New York City employers with four or more employees have been required to disclose in job postings – including those for promotion or transfer opportunities – the minimum and maximum salary offered for any position located within New York City or that “can or will be performed, in whole or in part, in New York City.”
The New York state law differs from the existing city law in several ways.
- With the state law, companies are required to include a job description in the advertisement, if such a description exists. If a position will be paid solely in commissions, the advertisement must include a general statement to that effect.
- The state law has a further reach, and applies to jobs that will “physically be performed” in New York as well as jobs performed outside of the state “report[ing] to a supervisor, office, or other work site in New York.” Thus, unlike the city law, the state law sweeps remote roles reporting into the state into its coverage.
Staying on Top of the Pay Transparency Trend
New York joins Colorado, Washington, California and Hawaii in requiring pay transparency. Illinois will join in 2025. A number of US cities and counties also have pay transparency legislation, and federal legislation is pending.
Outside the US, members states of the European Union must implement the EU Pay Transparency Directive by 2026, and we are tracking development on this significant obligation closely.
For a quick and easy way to stay on top of pay transparency obligations globally, we offer a fixed fee Global Pay Equity Compliance Compendium that monitors the legal pay equity requirements and forthcoming developments across 70+ jurisdictions (of which over 40 currently have transparency or reporting requirements). Please contact a member of our team for more information.