As we previously reported, New York State recently adopted a salary transparency law that, effective September 17, 2023, will require employers to disclose the pay range for any job that is advertised, including those for internal promotion or transfer opportunities. Last month, however, Governor Kathy Hochul signed A999/S1326 into law, amending the impending salary transparency law. As detailed below, the amendment modifies the scope of jobs covered by the law, eliminates its recordkeeping requirements, and provides a definition of “advertisements.”
Perhaps the most notable aspect of the amendment is that it clarifies the scope of jobs covered. To that end, the prior iteration of the law applied to jobs that “can or will be performed” within the Empire State. The amendment modifies the scope of the law, however, by specifying that the forthcoming law will instead apply to jobs that either (i) “will physically be performed, at least in part, in” New York State or (ii) “will physically be performed outside of New York but reports to a supervisor, office, or other work site in New York.” The latter item is particularly noteworthy because it means that jobs that otherwise have no relation to New York State, may still be subject to the wage transparency law merely because, for instance, the employee’s supervisor is based in New York.
In addition, the amendment eliminates the recordkeeping requirements of the initial version of the law, which would have required employers to maintain records related to each job, promotion, transfer, compensation, and job description. Notwithstanding this amendment, it remains a best practice for employers to maintain records concerning compensation, job descriptions, and position changes to demonstrate compliance with wage-and-hour laws, as well as to ensure appropriate recordkeeping in the event of a claim brought by an employee.
Moreover, the amendment also incorporates a definition of “advertisement,” which was absent from the initial version of the law. Under the amendment, “advertisement” means “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity; makes technical corrections.” Notably, the term advertisement applies to both internally and externally publicized job listings.
Prior to the law’s effective date, employers should review their current and future job postings to ensure compliance with the updated salary transparency law. New York City employers should also take this opportunity to review their job postings and make any necessary changes to comply with the City’s salary transparency law, which went into effect last year.