New York Poised to Modify Impending Pay Transparency Law

Author: Emily Scace, XpertHR Legal Editor

February 16, 2023

UPDATE: Gov. Kathy Hochul signed S.B. 1326 on March 3, 2023.

Seven months before New York State's pay transparency law is scheduled to take effect, the state legislature has passed a bill amending the law to clarify how it applies to remote roles. The bill now awaits signature by Gov. Kathy Hochul.

Beginning in September, employers with four or more employees will be required to include a pay range and job description in any job advertisement for a position performed in New York.

The original version of the law, signed in December 2022, applied to any job that "can or will be performed, at least in part, in the state of New York." This language raised questions about how the law would apply to remote roles that could theoretically be performed from anywhere.

In the proposed amendments, the pay transparency requirements would instead apply to any role that "will physically be performed, at least in part, in the state of New York." The bill further specifies that roles physically performed out of state, but that report to a supervisor, office or other worksite in New York are included within this definition.

Under the new definition, both a New York-based remote employee who reports to an out-of-state supervisor and an out-of-state remote employee who reports to a New York-based supervisor or office would be covered by the pay transparency requirements.

The bill also defines advertise for the purposes of the law as encompassing both internal and public job postings, including electronic postings, that contain a written description of an employment opportunity.

The amendments would also eliminate the recordkeeping requirements in the original law.

Proposed Changes in New York City

The New York City Council has also proposed tweaks to the city's pay transparency law, which took effect in November 2022.

If enacted, the amendments would require covered employers to include a job description and information about benefits, bonuses and other non-wage compensation in job postings, in addition to the already-required pay ranges.

Current employees would also have the right to learn the pay range for their own position annually and upon request.