Do Pay Transparency Law Only Apply To Employer Postings

Pay transparency laws have become a focal point in New York, promoting fairness and equality in compensation. These regulations aim to prevent wage discrimination and close gender and racial wage gaps by requiring employers to provide clear salary information in job postings. 

As both New York State and New York City implement these laws, it’s crucial for employers and job seekers to understand their rights and responsibilities. One question that often arises is: Do pay transparency laws only apply to job postings? Let’s look at the scope of pay transparency laws and how you can protect your rights. 

A Primer on Pay Transparency Laws

Pay transparency laws are designed to bring more clarity and equity to compensation practices by requiring employers to disclose salary ranges in their job postings. The primary objectives include:

• Closing persistent wage gaps
• Reducing discrimination
• Promoting equitable hiring practices

California and Colorado were among the first to enact pay transparency regulations, and New York State and New York City soon followed. These laws typically require employers to list salary ranges in job postings and provide current employees with pay range information upon request. Ultimately, workers gain leverage when negotiating salary offers, while employers demonstrate their commitment to fairness and compliance.

New York State Requirements

New York State has implemented comprehensive pay transparency laws to address wage discrimination:

• Applicability: These rules apply to employers with four or more employees, ensuring that small businesses comply. Temporary staffing agencies are generally exempt, but their clients aren’t.
• Salary disclosure: Employers must include salary ranges for any advertised position or promotion, specifying a minimum and maximum salary. This should represent what the employer, in good faith, expects to offer.
• Job descriptions: If a job description exists, it must accompany the job posting and salary information.
• Penalties: Employers found violating these rules could face fines per violation
• Other information: Employers may also need to provide information on bonuses, commissions, or other potential compensation.

These regulations emphasize the importance of transparency, encourage fair pay practices, and empower applicants and current employees.

New York City Requirements

New York City’s pay transparency laws build on the statewide framework, adding specific requirements for employers within city limits. Key aspects include:

• Coverage: All employers with four or more employees, including independent contractors and temporary workers, are covered. This wide net ensures the protection of most workers in NYC.
• Salary range disclosure: Employers must include a good faith salary range, specifying a minimum and maximum figure, in all job postings, whether for new positions, promotions, or transfers.
• Job listings scope: These rules apply to job advertisements placed online, in print, or internally shared within organizations. Employers must remain consistent across platforms.

In sum, pay transparency laws promote clarity and fairness in hiring while holding employers accountable for transparent and non-discriminatory compensation practices.

Beyond Job Postings 

Pay transparency laws in New York extend beyond external job postings. Current employees seeking promotions, lateral moves, or raises are also entitled to salary information. If an employee is considered for an internal role, employers must disclose the position’s pay range, ensuring consistency and fairness for those advancing within the company.

These requirements encourage equitable treatment and internal transparency, fostering trust between employees and management. Employers are held accountable not only to new applicants but also to their existing workforce. By sharing accurate salary information internally, companies can reduce the potential for bias and wage gaps, supporting a more inclusive workplace.

How Employees Can Protect Their Rights

Employees have the right to fair compensation and can protect themselves if they believe their employer is violating pay transparency laws:

• Document evidence: Keep records of job postings, internal communications, or any documents that could support your claim. Make notes of conversations that indicate potential violations.
• Request information: If you’re applying for a promotion or transfer, ask HR or your manager for the pay range if it has yet to be disclosed.
• File a complaint: If you suspect a violation, you can file a complaint with the New York Department of Labor (DOL). They will investigate and may impose penalties if necessary.

Employers cannot retaliate against employees who exercise their rights under New York’s pay transparency laws. By knowing your rights and consulting an employment law attorney, you can challenge violations without fear of retaliation.

Toward Greater Pay Transparency In New York City

New York’s pay transparency laws offer significant protections for job applicants and employees. If you believe your employer isn’t complying with these regulations or you’re facing retaliation, the team at Lipsky Lowe can help you understand your rights. Contact us today for guidance on pursuing fair treatment and achieving pay equity.