As we previously shared, New York’s pay transparency law is set to take effect on September 17, 2023. Earlier this year, state lawmakers amended the impending law to clarify what types of jobs are covered by the law while also changing other aspects of the law.
What jobs are covered?
With remote positions still being common, State legislators amended the pay transparency law to clarify the types of positions that are covered by the law. The previous version stated that it applied to jobs that “can or will be performed” within New York State. The law now applies to positions that “will be physically performed, at least in part” in the State. However, this does not mean that all fully remote/out-of-State jobs are off the hook. Employers must comply with the law even if the job is performed out of State if the employee reports to a supervisor, officer, or other worksite that is located in New York.
Employers need to be mindful when it comes to posting out-of-State jobs since compliance with the law is required if the position reports to an office or manager within New York.
What other changes were made?
The amended law eliminates the recordkeeping requirements that were included in the original legislation. This means that employers won’t be required to maintain records of rates of pay and job descriptions for each job, promotion, or transfer within the company. Despite this change, employers are still advised to maintain these types of records as a best practice to demonstrate compliance with wage-and-hour laws as well as other Labor Laws.
Last, the amended law provides a definition for “advertise.” This is relevant because the law requires an accurate rate of pay or compensation range to be posted in all job advertisements. The law defines advertise as “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.” In other words, the law applies to both internal and external postings.
The law also requires the Commissioner of Labor to promulgate rules and regulations related to this legislation. Unfortunately, the Department of Labor has yet to publish regulations, but as the effective date nears we’re expecting the regulations to be released. Of course, we’ll update you once the regulations are published.
Now is the time to begin ensuring compliance with the Pay Transparency Law.
Although employers won’t be required by law to maintain a record of compensation and job descriptions, employers are advised to gather this information as they prepare to comply with the law. Your current employees are going to see these job postings; therefore, it’s best to ensure that your current employees are appropriately compensated for their positions. To eliminate potential issues, take steps now to ensure your current employees are equitably compensated.
Having this information on hand will make it a breeze to begin the rate of pay or pay range along with job descriptions in your job advertisements. Both current and new postings need to be reviewed to ensure they’re compliant. If you’re not already including the required information, consider starting now.
As always, The Coppola Firm is here to help. If you have questions about this or other employment laws, don’t hesitate to reach out. Our team can answer any questions that you may have and work alongside you to develop business practices that are practical, useful, and compliant.