A couple of years ago, New York passed a law that requires pay transparency in employment. While the pay transparency law doesn’t apply to all employers, it applies to most, and penalties apply when employers fail to comply. Here is an overview of what employees in New York should know about their legal rights:
New York’s Pay Transparency Law Applies to Employers with Four or More Employees
The first thing to know about New York’s pay transparency law is that it applies to employers with four or more employees. This is based on the law’s definition of an “employer,” which includes, “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.” The law also applies to employment agents and recruiters—which is intended to prevent employers from using agents and recruiters to sidestep the law’s pay transparency requirements.
The Law Requires Pay Transparency for Job Postings, Promotions and Transfer Opportunities
As the New York Department of Labor (DOL) explains, under the state’s pay transparency law, covered employers must, “provide job descriptions and list compensation ranges for designated job opportunities, promotions and transfers.” Compensation ranges can consist of either, “the minimum and maximum annual salary or the hourly compensation believed to be accurate at the time of posting.” Covered employers must also clearly disclose if a position is commission-based.
Designated job opportunities, promotions and transfers are those for positions that either: (i) will be physically performed (at least in part) in New York; or, (ii) will be performed outside of New York but involve reporting to a supervisor, office or other work site in New York.
Advertised Pay Ranges Must Include Salary and Wages Only
When preparing job advertisements and other materials to comply with New York’s pay transparency law, employers may only include salary and wages (or disclose if the position is commission-based). As the New York DOJ also explains, “[e]mployers are prohibited from including other forms of compensation or benefits, such as tips, employer provided health insurance, retirement plans, or vacation time within the range of pay.”
While employers may (and, in many cases, must) also accurately disclose other applicable forms of compensation, they must do so separately from their wage and salary disclosures. This is intended to ensure that job applicants and employees do not have a false perception of the compensation they are entitled to receive.
The Law is Intended to Address Wage Disparities in New York
New York’s pay transparency law is intended to address the wage disparities that exist in numerous industries and professions. By requiring most employers to publicly disclose their wage and salary ranges, it seeks to both: (i) prevent employers from offering unequal pay to similarly qualified job applicants and employees based on their protected characteristics (i.e., race, sex and disability); and, (ii) provide job applicants and employees with the information they need to determine if their legal rights are being violated.
Employers’ Pay Ranges Don’t Have to Be Set in Stone
While the law requires employers to make a “good faith” effort to accurately disclose wage and salary ranges, it does not require them to set these ranges in stone. In other words, employers can still adjust the wages and salaries for individual positions over time. However, their job advertisements must reflect the compensation, “they are willing to pay at the time of the advertisement’s posting;” and, if this changes, they must update their job advertisements (and other materials) accordingly.
Job Advertisements Must Also Include an Accurate Job Description (in Most Cases)
In addition to requiring accurate wage and salary disclosures, the law also requires covered employers to include accurate job descriptions in their job advertisements. The only exception is, “[w]hen the job title clearly conveys the duties for the job.” The New York DOJ provides a job advertisement for a “dishwasher” as an example of when a job description would not be required.
Employees Have the Right to Discuss Their Compensation with Their Coworkers
Another important feature of New York’s pay transparency law is that it gives employees the right to discuss their compensation with their coworkers. Specifically, the law prohibits covered employers from retaliating against employees who share information about their wages, salary or any other forms of compensation.
Job Applicants and Employees Can File Complaints for Pay Transparency Violations
If you believe that a covered employer has violated New York’s pay transparency law, you have the right to file a complaint with the New York DOJ’s Division of Labor Standards. In addition to prohibiting retaliation against employees who discuss their compensation with their coworkers, New York law also prohibits retaliation against employees who file complaints for violations of the law.
New York’s Pay Transparency Law Is Not the Only Law That Protects You
While New York’s pay transparency law provides several important protections for job applicants and employees, it is not the only law that provides pay-related protections to workers in the state. For example, New York’s State Human Rights Law (SHRL) prohibits all forms of discrimination in employment—and it applies to all employers in the state regardless of size.
Under New York’s SHRL, it is illegal for an employer to, “discriminate against an individual in compensation or in terms of conditions or privileges of employment” based on the individual’s protected characteristics. Protected characteristics under the SHRL include, “age, race, creed, color, national origin, sexual orientation, gender identity or expression, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, or status as a victim of domestic violence.” The federal Equal Pay Act and other laws may apply as well—and, if you have questions about your legal rights for any reason, you should consult with a New York employment lawyer promptly.
Request a Free Consultation with a New York Employment Lawyer at Bell Law Group
Do you have questions about your legal rights as a job applicant or employee in New York? If so, we invite you to schedule a free consultation at Bell Law Group. To speak with an experienced New York employment lawyer about your situation in confidence, please call 516-280-3008 or contact us confidentially online today.
