In today’s workplace, pay transparency isn’t just a trend anymore—It’s a movement. For Human Resources (HR), it’s changing how we hire, how we talk about compensation, how we build trust with our teams, and can even affect your company’s reputation.
New York is one of the states that’s leading in this area, with both state and city level pay transparency laws now in effect. Whether you’re hiring in Manhattan, managing a remote team out of Buffalo, or just trying to keep your pay policies and practices consistent across states, understanding these laws is essential.
Here are three key takeaways you’ll learn in this article:
New York State’s Pay Transparency Law went into effect on September 17, 2023. It’s officially known as Labor Law § 194-b. This law applies to employers with four or more employees, even if some of them are remote. It covers private businesses, nonprofits, and labor organizations.
Employers with 4 or more employees must do the following in their job postings, both internal and external:
Again, remember that remote roles count too. If the position reports to a manager or office in New York, then it’s covered under the law. This applies even if the candidate is working in another state.
If you’re already familiar with the New York City pay transparency law, much of this will feel familiar. New York’s city law came first and laid the groundwork for the state law.
There are several disclosure requirements, including:
Be aware that both New York City and State have enacted salary history bans, making it unlawful for employers to:
As a result, employers need to rely on a candidate’s qualifications, experience, and the role in general to determine compensation, and not what they earned in the past. This helps to close historic pay gaps that follow employees throughout their careers. Keep in mind though that employers can still ask questions about a candidate’s salary expectations.
Employees have options if they have complaints related to pay transparency, including:
No specific recordkeeping deadlines are outlined in the law, but as with anything in HR, documentation matters, especially if concerns are raised. With that said, we recommend you:
Let’s talk consequences. The New York State Department of Labor enforces this law, and penalties can escalate quickly:
Currently, there’s no private right of action under state law, meaning applicants can’t sue directly, but the NYC law may allow for other remedies.
Bottom line? Don’t wait for a complaint. Be proactive.
Other related local laws across New York may follow similar rules, so double-check based on your hiring locations.
So, what does all this mean for your team?
You’re not alone. With California, Colorado, Connecticut, and Washington (to name a small few) all enforcing their own versions of pay transparency laws, multi-state employers need a strategy:
Need more help navigating all this? Here are some additional helpful resources:
Pay transparency is an opportunity to lead with fairness, integrity, and trust. By getting ahead of the New York pay transparency laws, you’re not just following the law and protecting your organization. You’re creating a more equitable hiring process for everyone involved.
Take the time to audit, align, and educate your teams. Help your company build a culture where pay isn’t a secret, because clarity leads to confidence, and confidence attracts top talent.
If you need a partner to guide you through this process, OutSolve is here and ready to assist.
If you want to see how other HR professionals are handling pay transparency, join HR Gumbo City, our vibrant Slack community where you can learn best practices and get advice from your peers.