As the year continues to progress, there is not much to report on the pay transparency legislation front. However, in September, New York became the fourth state to implement its pay transparency laws.
New York state
On September 17, 2023, New York State enacted its own version of pay transparency laws. Employers with four (4) or more employees will be required to include a pay range in postings for all jobs (including for promotion or transfer opportunities), that will either:
- Be performed, at least partly, in New York state; or
- Be performed outside New York state, but will report to a supervisor, office, or worksite in the state of New York.
A pay range in a job posting must include a minimum and maximum annual salary or hourly rate of pay for a role that the employer in good faith believes to be accurate at the time of posting. A good faith pay range is one that the employer truly believes they are willing to pay at the time they post the role.
There is a lot to consider before publishing a pay range on a job posting. It is important that you have done the foundational work and developed standardized salary structures built upon reliable data to set you up for scale and to be confident in the ranges you are posting. Posting competitive ranges will help you attract talent.
- 70% of organizations that post salary ranges say it has generated more applicants (SHRM)
- 66% of organizations that post ranges say it has increased the quality of applicants (SHRM)
It is also essential you invest in communicating pay internally to not risk employee retention or turnover.
The New York Department of Labor recently released some guidance stating that the salary range cannot include other forms of compensation or benefits; however, employers are encouraged to disclose those other compensable benefits separately.
Payscale’s Pay Transparency Solution
At Payscale, we believe in helping our customers approach pay transparency with confidence. We do this by:
- Understanding their competitive landscape and determining a strong data strategy
- Evaluating current employee pay against the market to ensure competitive and fair compensation across the organization
- Implementing standardized and scalable practices with job architectures and salary ranges
- Providing an added layer of confidence to pay transparency practices by offering technology and resources focused on pay equity analysis, job description management, compensation planning, and effective communications about pay
Want to learn more from our experts?
Payscale hosts an ongoing pay transparency legislation webinar series to help organizations stay up to date.
In our most recent episode, Episode 9: Navigate the Changing Global Landscape, we provided an update on global legislation, including New York, and best practices on how to respond.
Access the most recent episode on demand here.
Stay up to date with the latest pay transparency legislation on our pay legislation tracking page here, which includes a library of the full pay transparency webinar series.