On September 17, 2023, New York State will enforce a new law that adds to the growing trend towards salary transparency in American workplaces. This specific measure mandates certain level of salary disclosure in job advertisements, making New York state the latest addition to a list of at least 15 other states and localities, including New York City, that have similar requirements.
New York state’s Salary Transparency Law seeks to promote pay equity in the employment sector by making it mandatory for employers to display salary range or base pay in job postings. This renders employers’ remuneration policies to be much more clear and open, subsequently preventing any hidden discrimination within salary structures.
The new legislation is likely to raise several questions amongst employers operating within New York state. As part of this piece, we will attempt to provide clarity on some of the key points revolving around the implementation of this law.
- The law obligates the employer to disclose the salary scale for a vacant position, however it does not dictate the width of the scale that should be provided, allowing the employer to conduct its own evaluation in this regard.
- While the law mandates that the salary information be made clear in job postings, it does not require the employer to disclose these in the initial stages of the recruitment process.
- The law does not impose penalties on the widespread practice of employers asking potential employees about their salary history. Despite this, it is worth acknowledging that not divulging this information cannot serve as grounds for not hiring qualified candidates.
Understanding these aspects of the legislation is crucial for complying with the new requirements and avoiding potential legal roadblocks. As always, employers are encouraged to seek legal counsel in order to ensure full compliance with the evolving body of labor and employment laws.