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. 

The New York City Pay Transparency Law is, as of November 1, 2022, in effect. As previously reported in our Blog on March 29, 2022 and May 6, 2022, the law requires all employers, with 4 or more employees, to include a "good faith" salary range in all advertisements for a job, promotion or transfer opportunity that is to be performed - in whole or in part - in NYC.

The following are additional requirements/clarifications of the Law:

• The Law covers full-time/part-time positions, interns, domestic workers and independent contractors.
• "Advertisements" include all written descriptions of an available job, promotion or transfer opportunity publicized to a pool of potential applicants including internal postings.
• The salary range must include both a minimum and a maximum salary (if employer has no flexibility, the minimum and maximum can be identical). 
• The stated amounts should be the annual salary or hourly rate. Other forms of compensation (e.g. bonuses, tips, commissions, insurance, over time pay, etc.) do not need to be included.
• The New York City Commission on Human Rights ("Commission") will investigate compliance with the new law (on its own and/or in response to complaints). 
• Potential applicants can file claims with the Commission or can file a lawsuit in court.
• The Commission will not assess a penalty for the first violation of the Law if cured within 30 days. However, the Commission may assess penalties of up to $250,000 for the first uncured violation and all subsequent violations.