GOVERNOR HOCHUL ANNOUNCES GROUNDBREAKING STATEWIDE PAY TRANSPARENCY LAW TAKES EFFECT

Governor Kathy Hochul today celebrated New York’s groundbreaking pay transparency law, which takes effect today. The landmark legislation, which Governor Hochul signed into law last year, requires businesses across New York State with four or more employees to include compensation ranges in all advertisements for job, promotion, and transfer opportunities. The legislation underscores New York's commitment to addressing wage disparities and promoting transparency in compensation practices across the state and builds on the Governor’s commitment to supporting and empowering workers.

“With the implementation of our pay transparency law, New York is once again at the cutting edge of promoting fairness and equity in the workplace,” Governor Hochul said. “Wage disparities have deepened inequality in our state for far too long and put countless workers – particularly women and people of color – at a disadvantage. I was proud to sign this legislation to help level the playing field across our state, and I will continue to work with the Legislature on solutions to support, protect, and empower workers until we finally close the wage gap in New York.”

New York State Department of Labor Commissioner Roberta Reardon said, "Transparency in compensation is not merely about numbers—it's about fairness, empowerment, and the recognition of every individual's worth. This law is a monumental step in ensuring that every New Yorker has the information they need to make informed career decisions, fostering an environment where equity isn't just an ideal but a daily practice."

The law requires all job, promotion or transfer opportunities physically performed, at least in part, in the State of New York to include a range of pay when advertised. This applies to any opportunities that are performed outside the state, including remote or telecommuting opportunities, that report to a supervisor, office or other work site in New York State. Pay ranges must consist of the minimum and maximum annual salary or hourly compensation believed in good faith to be accurate at the time of posting. Employers must also clearly state if a position is commission-based. This law marks a significant step towards leveling the playing field, ensuring that employees have access to vital compensation information, and empowering them to make informed decisions about their careers.

A pay transparency fact sheet and FAQ document are available on the NYSDOL website with additional information and guidance on the new law. Proposed regulations for the new law were published in the State Register on September 13, 2023. The public has 60 days to review and comment on the regulations.

Governor Hochul’s dedication to fostering transparency, fairness, and equity in the workplace was reinforced by a recent report from the New York State Department of Labor on the Gender Wage Gap. The report indicated women in New York’s workforce earned 88.2 cents for every dollar earned by men in 2021.

As part of the Pay Transparency Law's enforcement, NYSDOL holds the authority to ensure compliance, and individuals are encouraged to file complaints if job advertisements do not contain compensation ranges. NYSDOL is committed to a strong enforcement and penalty structure for those employers that refuse to comply.

NYSDOL will actively engage stakeholders and create helpful guidance to educate 500,000 businesses, workers, and job seekers as it conducts the public outreach campaign required by this new law. After a period of focused outreach to businesses, the Department will utilize complaint data to determine if patterns of non-compliance emerge in certain industries or certain regions of the state.

Governor Hochul remains committed to supporting workers across New York State and has taken several recent actions to expand employment opportunities, strengthen workers’ rights, and protect workers from abuse and exploitation by their employers. A list of recent labor accomplishments is available here.