The New York Pay Transparency Law (FARE Grant) will take effect on September 17, 2023. The purpose of this law is to empower job seekers with this important information up-front and to address systemic pay inequity and discriminatory wage-setting and hiring practices by employers.
The Pay Transparency Law applies to all New York employers who employ four or more employees. This law requires employers to disclose the compensation, or range of compensation, in any advertisement for a job, promotion, or transfer opportunity.
The compensation range should show the minimum and maximum annual salary or hourly rates that the employer believes in good faith to be accurate at the time of posting.
In addition to salary disclosure, employers must also publish the job description for the position, if one exists. Employers are required to keep records that show the history of compensation rates and/or ranges for each job opportunity and the job description published for the position.
This new law requires action on your part.
First, be sure to update all job postings – both internal and external – to include the required compensation information and job description.
With this directive to publish job descriptions, it is a good time to review your job descriptions for accuracy. While having written job descriptions is not a requirement of doing business, it is best practice to have them as a tool to use throughout the employment life cycle, from recruiting to hiring to promotion to resignation/termination. Job descriptions are important because:
- They serve as a marketing tool to find and attract the best candidates for your position and organization
- Communicates clear, written expectations for both the employer and employee
- Allows and promotes greater employee productivity
- Illustrates a career path for employees, which in turn leads to a greater tenure with a company
- Can help mitigate risk for your business
Of course, if you need help or have questions regarding compliance around the New York Pay Transparency Law, contact us for assistance.