New York Amends Statewide Pay Transparency Law
On March 3, 2023, Governor Kathy Hochul signed a number of changes to the New York Payroll Transparency Law (“NYPTL”) into law. As we previously reported, the NYPTL goes into effect on September 17, 2023, and will require covered employers to include the following information in advertisements for internal and external “job, promotion or transfer opportunities”:
Compensation or compensation range (defined as “the minimum and maximum annual wage or hourly compensation range for a job, promotion or transfer opportunity”) that the employer believes in good faith to be accurate at the time of posting; and Job Description for the position, if any.
Most notably, the changes revise the type of ads that must include compensation information and a job description. Before the March 3 changes, the NYPTL required employers to include such information in advertisements for jobs, promotions or transfer opportunities “that may or will be performed, at least in part, in New York State.” Like New York City’s Wage Transparency Law, that definition appeared to include both New York-based positions and fully remote positions. However, after the March 3 changes, the NYPTL provides that compensation information and a job description must be included in advertisements for jobs, promotions, or transfer opportunities “that will be physically performed, at least in part, in New York State, including a job opportunity, promotion, or transfer that will take place physically outside of New York but reports to a supervisor, office, or other workplace in New York.” In other words, advertisements for the following positions will now be covered by the NYPTL: (i) those that will be physically performed in New York, even if only in part (eg, hybrid positions or positions that require periodic attendance in New York); ; and (ii) those to be physically performed outside of New York, but report—presumably at any level on the organizational chart—to a supervisor, office, or other workplace in New York.
The March 3 changes also eased employers’ record-keeping requirements. Prior to the amendment, the NYPTL required employers to “maintain and maintain records necessary to meet the requirements of [NYPTL],” including compensation history and all job descriptions. However, the March 3 changes eliminate this record-keeping requirement.
Finally, the March 3 amendments clarify the meaning of the term “advertisement,” which is now defined in the NYPTL as “to make available to a group of prospective applicants for internal or public viewing, including electronically, a description of writing a job opportunity.”
In light of these changes, employers should review their compliance efforts related to the NYPTL prior to the September 17, 2023 effective date. In addition to analyzing compensation information and job descriptions, employers should also be sure to update and review relevant organizational charts to determine whether an advertised position reports to a supervisor, office, or other workplace in New York. York.