Legal Analysts

Showing posts with label labor law 194-b. Show all posts
Showing posts with label labor law 194-b. Show all posts

Wednesday, September 13, 2023

Pay Transparency in Job Applications Regulation Proposed in NY

The New York Department of Labor has proposed a new rule intended to increase pay transparency in accordance with Labor Law 194-b, which statute (not the new rule) first becomes effective 9/17/2023. 

Key Proposals:

·       Employers are now required to include a range of compensation on job postings.

·       The rule would not apply to government agencies or “Temporary Help Firms”.

·       The Range of Compensation cannot be open ended, i.e. “$20 per hour and up”, it needs a "good faith" minimum and maximum. Good faith means the amount the employer legitimately believes they are willing to pay a successful applicant at the time the job is posted. 

·       Any current or potential employee affected by a violation can file a complaint under the proposed rule, as can the Commissioner of the Department of Labor. 


Why it Matters:

·       The range of compensation can’t include other forms of compensation; i.e., $18 per hour plus $10 per hour in expected tips cannot be posted as $28 per hour. This is good for employees because it reduces the risk of employee exploitation.

·       The rule is not overly restrictive for employers; it allows them to adjust the range of compensation after collecting additional information through the hiring process.

·       The rule is a good effort at striking a balance between the rights and needs of employees and employers. 


Public comment can be made until November 12, 2023 at email:


Thursday, December 22, 2022

All NYS Employers Must Disclose Compensation to Applicants and Employees - Equal Pay Lawsuit Coming

On December 21, 2022, the State caught up with New York City by passing a statewide mandatory compensation disclosure act, S9427A, which will be effective on September 17, 2023. 

The new law, Labor Law 194-b, requires that all employers and agencies only advertise a job, promotion, or transfer if they also provide the compensation or compensation range together with a job description.

While no job description is required if it does not exist, be warned that the law applies even if only a part of the job is to be performed in New York. 

Yet, that's all we know... FOR NOW.

However, there will be more because the Department of Labor is charged with promulgating additional rules and regulations. So, stay tuned. 

Hopefully, these rules will include a notice before violation provision where an employer can cure before being penalized like the City's version. 

The penalties are big - they are $1,000 for the first violation, $2,000 for the second, and $3,000 for subsequent violations. Nonetheless, the real risk is that it's conceivable that a court could find that one mistake could result in thousands of violations based on the number of positions available, applicants, and varying web aggregators that reproduce the job post.

That is all setting aside a company's real exposure. 

Now, employees are going to know if they have claims under the Equal Pay Act or if they've been otherwise discriminated in the terms of their employment. This is big!