New York to require salary ranges in job postings 

March 09, 2023

As of Sept. 17, 2023, a New York employer, employment agency, employee or agent thereof will be required to include compensation or the compensation range when advertising a job, promotion or transfer opportunity that will physically be performed — at least in part — in New York state under recent legislation (S5598D and S1326) that amends the labor code. New York City (NYC) already requires salary information to be included in job postings as of January 2022 and is considering legislation to expand its requirements. While New York’s law is similar to the NYC law, it explicitly states it would not supersede or preempt any provisions of local law, rules or regulations. Therefore, NYC employers will need to comply with both laws.

Application. An employer is broadly defined as any person, corporation, limited liability company, association, labor organization or entity employing four or more employees in any occupation, industry, trade, business or service, or any agent thereof; and any person, corporation, limited liability company, association or entity acting as an employment agent or recruiter, or otherwise connecting applicants with employers. Temporary help firms will be exempt, since they already disclose this information in compliance with the state’s Wage Theft Prevention Act.

Covered job listings. Any advertisement for a job, promotion or transfer opportunity that could or will be physically performed, at least in part, in New York, will be covered. This includes a job, promotion, or transfer opportunity that is physically performed outside of New York but reports to a supervisor, office or other work site in New York. Advertisements for jobs, promotions, or transfer opportunities paid solely on commission will need to include a general statement that compensation would be based on commission. 

Disclosures. To advertise a job, promotion or transfer opportunity, employers will need to disclose the compensation or a range of compensation for such job, promotion, or transfer opportunity; and the job description for such job, promotion, or transfer opportunity, if a description exists. “Advertise” is defined as: “to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.”

Included compensation information. The range for the listed minimum and maximum annual salary or hourly pay that the employer — in good faith — believes to be accurate at the time of posting would need to be included. 

Non-retaliation. Employers could not refuse to interview, hire, promote or otherwise retaliate against individuals who exercise their rights under this legislation. 

Enforcement. Any person will be able to file a complaint with the Labor Commissioner for violations of the legislation. Noncompliant employers will face civil penalties under the labor law. 

The Labor Commissioner will enact procedural rules, and the Department of Labor will conduct a public awareness outreach campaign, including making information available on its website and otherwise informing employers of these requirements. Here are some steps to consider. 

• What is the desired compensation story?
• What will be shared?
• With whom will the story be shared?
• How will the information be shared, and what is the desired reaction?
• Why is the compensation story important?

Create a digital platform where employees and external candidates can access salary information and explore career paths.

• Develop training toolkits and resources for managers and HR partners to ensure the compensation strategy is effectively and consistently communicated.
• Enhance performance management and coaching resources to include modeling tools that illustrate earnings potential for various career opportunities.

• Highlight key experiences and branded employee communication/messaging.
• Define broad external candidate messaging that is consistent with internal messaging.
• Create a communication playbook (including target audience, communication objectives for the audience, delivery vehicles, frequency/timing, challenges, metrics, etc.) to ensure clarity and transparency for all employees at various points of the journey.

• Survey candidates and employees to identify unmet needs and which aspects of the value proposition — including compensation — are most important.
• Conduct statistical modeling to see how employees' perception of pay affects outcomes (such as turnover).

In recent years, many states have enacted legislation requiring the disclosure of salary ranges and pay data. For example, in Colorado, each job vacancy posting has to include the hourly wage or salary, or the hourly wage or salary range, and give a general description of all benefits and other compensation offered. The implementation rules specify that this requirement does not apply to jobs performed outside of Colorado and job postings entirely outside of Colorado. California, Connecticut, Maryland, Nevada, Rhode Island and Washington also require employers to disclose — voluntarily or on request — information about salary ranges for open positions or promotions. Other states, such as Massachusetts, are considering similar legislation. For more information, see Roundup: US employer resources on states’ recent equal pay laws.

• S01326 (Legislature)
• S9427A (Legislature)
• Int. No. 907 (New York City Council) 

Links to any resources on Mercer Link are accessible to Mercer consultants. Clients and prospects may contact their consultants for copies or access 2019 and later GRISTs via the Law & Policy Group’s webpage and library.

• Roundup: US employer resources on states recent equal pay laws (Regularly updated)
• Washington regulator clarifies new pay disclosure requirements (Dec. 19, 2022)
• California to impose more salary disclosure pay data reporting (Oct. 3, 2022)
• Salary information will be required in New York City job postings (May 4, 2022)
• Colorado issues pay equity rules to implement law in 2021 (Nov. 17, 2020)

• How to make the move to pay transparency
• The case for pay transparency (February 2022)