Statewide Pay Transparency Law on the Horizon
On June 3, 2022, Senate Bill 9427A passed the New York State Legislature. Once delivered and signed into law by Governor Hochul, this Bill will amend the New York State Labor Law by adding new statewide requirements for employers of four (4) or more employees to include certain information in advertisements for job openings, promotions, or transfer opportunities.
Specifically, the law would require advertisements to include: the job description for the role, if one exists; the compensation or a range of compensation for such role; and, if the role is paid solely on commission, a general statement to that effect. The law would define “range of compensation” to mean 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.”
The law would also create a record-keeping requirement, mandating employers maintain the history of compensation ranges and job descriptions for each position, to the extent they exist. Also included is an anti-retaliation provision prohibiting an employer from refusing to interview, hire, promote or employ an applicant or current employee for exercising any of the rights provided by the law. Violations are subject to investigation and prosecution by the NYSDOL with civil penalties ranging between $1,000 and $3,000, which increase upon repeat offenses. The law does not expressly create a private right of action.
Senate Bill 9427A follows a broader trend in pay transparency laws that were enacted in Ithaca, New York City and Westchester County earlier this year. The law would take effect 270 days after Governor Hochul signs the Bill.
If you have any questions regarding this article, please contact the Underberg & Kessler attorney who regularly handles your legal matters or Ryan T. Biesenbach, the author of this piece, here, or at (585) 258-2865.
To have these legal alerts sent straight to your email, click here to subscribe to our newsletter.