***UPDATE: Governor Hochul signed the amendments into law on March 3, 2023.***
The New York State Legislature has approved chapter amendments to New York State’s pay transparency law, which is slated to take effect on September 17, 2023. The most notable revision would provide that the law applies to remote positions physically performed outside of New York that report to a New York supervisor, office, or work site. The bill is currently before Governor Hochul, and if signed, would become part of the law taking effect in September.
As we previously reported, in its original form, the New York State pay transparency law will require employers to disclose a compensation range and job description in advertisements for jobs, promotions, or transfer opportunities that “can or will be performed, at least in part, in the state of New York.” If the amendments are approved, the law would apply to advertisements for jobs that “will physically be performed, at least in part, in the state of New York,” including any position that “will physically be performed outside of New York but reports to a supervisor, office, or other work site in New York.” The amendments do not provide additional details about what is meant by “report[ing] to” a supervisor, office, or work site in the state.
By removing “can” and adding “physically,” the proposed bill would create a different coverage standard than the New York City pay transparency law that recently took effect. The City law expressly excludes “[p]ositions that cannot or will not be performed, at least in part, in the city of New York.” Businesses advertising positions both in New York City and elsewhere in the State should be mindful of the different standards applicable to those groups for purposes of pay transparency disclosures.
Also notably, the amendments would eliminate language that would have required employers to maintain necessary records to reflect compliance with the law, including, but not limited to, “the history of compensation ranges for each job, promotion, or transfer opportunity and the job descriptions for such positions, if such descriptions exist.”
Finally, the bill would expand upon the meaning of the term “advertise” by defining it as “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.”
We will continue to monitor and report on further developments regarding the pay transparency law and these proposed revisions.