New York State employers who haven’t historically provided salary information in job ads, now need to take action. New York has joined a growing number of states in imposing various requirements on employers to disclose anticipated wages to prospective employees. New York State Senate Bill S9427A, signed into law by Governor Kathy Hochul on December 21, 2022, requires employers with 4 or more employees to include the compensation or “range of compensation” and job description in all job, promotion, or transfer advertisements if the job will be performed in NY. This is effective September 17, 2023 so employers need to be prepared. New York City already implemented a salary disclosure law, which took effect on November 1, 2022, followed by Westchester County where it became effective November 6, 2022.
The “range of compensation” is defined as the minimum and maximum salary or hourly range believed to be accurate at the time of posting. This information is intended to give job seekers a more complete understanding of the responsibilities and duties associated with a given position, and to help them determine whether they are qualified and interested in applying. It’s important to note that the New York State Employer Salary Disclosure Laws do not prescribe specific salary levels or dictate pay scales, but rather aim to promote transparency and fairness in the workplace. The law doesn’t require employers to list benefits, bonus expectations, potential commissions, or other compensation details such as stock options.
Employers must now focus on the job requirements and qualifications when determining a salary offer and should communicate the salary range for the position in question. This law helps to reduce pay disparities and to promote pay equity in the workplace. It is an important step towards ensuring fair and equal treatment of all job applicants in New York State.
Employers will also need to incorporate these disclosures into their hiring processes and those of any third-party providing hiring/recruiting services to the employer. To accomplish these objectives, employers may wish to consider reviewing and, if necessary, modifying their existing policies, practices, and processes related to recruitment, hiring, compensation, and training personnel engaged in hiring/recruiting.
Another challenge for employers is dealing with the public perception of their salary information. With this information now readily available to the public, it is important for employers to be able to defend and explain their salary decisions and practices. This requires a deep understanding of the laws and regulations related to salary disclosure, as well as a clear and effective communication strategy to address any questions or concerns that may arise.
Those who violate the law will be subject to civil penalties under New York labor laws. Employers should take proactive steps to ensure that they are in compliance with the law to avoid potential penalties and legal actions. Employers should be taking the time now to start developing and implementing appropriate policies and procedures for tracking and reporting employee pay information. They may wish to seek counsel to ensure compliance and provide training to management on the requirements of the law.
Despite the complexities, many employers in New York State have embraced the salary disclosure laws as an opportunity to increase transparency and accountability within their organizations. By making their salary information available to the public, they are sending a clear message that they are committed to fair and equitable pay practices. These laws have also presented an opportunity for employers to increase transparency and accountability within their organizations. By embracing this opportunity, employers can help to build a more equitable and just workplace culture for all employees. This, in turn, can help to build trust and confidence with their employees, customers, and the wider public.
Kimberly R. Roffi, CPA
Kim, who has been a member of the firm since 2001, has over 19 years of public accounting experience. Today, she is a partner of the firm and previously served as Director for the firm’s tax and business advisory practice and Director of Finance and Operations for the firm internally. Kim has written Practice Insights for Lexis Nexis’ tax research platform and has been published in Building Long Island magazine.