All employers across the state of New York will now be required to follow the transparency law. That means, they will have to state the proposed pay rates and clearly give the pay ranges whenever they are advertising vacancies. The rates will have to be disclosed to the public irrespective of the vacancies being advertised within the firm or externally, as well as to employees keen to get a transfer or promotion. New York City has already been following a similar law since 2022.
This law will apply to all employers with at least four employees in their workforce. The law will also apply to employees working remotely for employers in New York state, that is, if they are reporting to a manager or office in New York state.
Government entities or firms offering temporary help are exempt from this law, which has come into effect starting 17 September 2023.
This is part of the ongoing efforts to ensure that not just women but people of colour are able to command equal pay for equal work. It is hoped that pay transparency will prevent employers from discriminating in terms of pay, that is, paying some people less and others more for similar roles, on the basis of their race, gender or factors not pertaining to their skills. The move will also spread awareness amongst exploited workers providing them information about the kind of pay they can demand or should expect.
