NY Governor considers pay transparency bill

The bill before Governor Hochul would amend the New York Labor Law to require, among other things, that all New York employers with four or more employees include the compensation or a range of compensation for any job, promotion, or transfer opportunity being advertised. If a job is paid solely on commissions, employers can comply with “a general statement that compensation shall be based on commission.” 

This information must be included for any job that “can or will be performed, at least in part,” in New York state. On its face, therefore, the bill could be read to cover even fully remote positions where an applicant could conceivably work from home in New York state. 

As we’ve previously discussed, New York City recently passed a similar law, which applies only to NYC employers with four or more employees. While the premise and intention of these laws align, there are slight distinctions that employers should be aware of, including: 

• Content of notice. The NYC law requires that a salary range be posted, meaning a minimum and a maximum. The state law, on the other hand, will allow just one salary amount on the posting. Neither the NYC law nor its guidance contemplates positions that are paid solely on commission, as the state bill does.
• Potential remedies. Under the state bill, an employer deemed noncompliant with the law will be subject to civil penalties – up to $1,000 for the first violation, up to $2,000 for the second violation and up to $3,000 for a third or subsequent violation. The revised NYC law, on the other hand, provides that upon first violation of the law, an employer will not be subject to a civil penalty and will have 30 days to cure the violation. Subsequent violations are subject to civil penalties up to $125,000, or up to $250,000 if the act was willful, wanton, or malicious. 

If signed, the bill will take effect 270 days after signature. Employers will have this time period to prepare for compliance with the law and to review potential guidance from the commissioner. 

Authored by Kenneth Kirschner, Michael DeLarco, Dave Baron, and Shannon Finnegan.