The hiring market in New York is challenging as it is. The state salary transparency laws make it even more complex. That is why it is important for business owners to understand these laws if they want to avoid making a costly mistake.
The core requirements of salary disclosures
To eliminate financial uncertainty for applicants or employees, New York State labor law requires employers to disclose the annual salary range or hourly rate upfront. Businesses must legally provide these specific compensation details when advertising:
- Jobs
- Promotions
- Transfer opportunities
The disclosed range must reflect the pay range the employer believes in good faith to be accurate at the time they post the advertisement. If a position’s compensation relies solely on commission, the employer has to explicitly state that the compensation will be based on commission. Furthermore, advertisements should provide a specific job description for the opportunity if one exists.
Which employers and jobs are covered?
The regulation applies to any person, corporation or entity employing four or more employees. Employment agencies and recruiters that advertise positions on behalf of employers are also subject to the law’s requirements. However, the statute excludes temporary help firms from its definition of employer. Businesses that use staffing agencies should confirm how this employment law applies to their specific hiring arrangements.
Addressing violations and penalties
New York labor regulations directly impact recruitment strategies, making full compliance essential for covered employers. Employers who fail to comply with pay transparency requirements may face civil penalties. Business owners who want to review their job posting practices for compliance may consult a business law attorney for guidance.
