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: regulations@labor.ny.gov.