Wage Transparency Law Set To Take Effect

Credit Unions will need to prepare for a new law taking effect September 17 requiring all private businesses in New York State with four or more employees to disclose the pay or salary ranges for all advertised job openings, promotions, and transfer opportunities. The law also prohibits any retaliation against an applicant or current employee for exercising their rights under the law. Failure to disclose this information in job advertisements can result in a potential civil penalty for violations of up to $1,000 for a first violation, $2,000 for a second violation, and $3,000 for a third or subsequent violation.

Job advertisements must also disclose compensation for certain positions even where the job will ultimately be performed from another state if the individual reports to an office, a worksite, or a supervisor in New York. Disclosure of compensation ranges is not required where compensation is made entirely on commission, however, in these cases the advertisement must disclose that the compensation shall be based on commission.  

The New York State Department of Labor has not yet issued regulations or guidance on this law, however, it is expected that this guidance will be issued soon.

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