New York Senate Bill S9427A: New State Legislation Poised to Require Pay Transparency

By: Cristina N. Hyde, JD

On June 1, 2022, in an effort to address systemic pay inequity throughout the state, the New York State Legislature passed Senate Bill S9427A.  If signed by Governor Kathy Hochul, the new law will require employers to disclose critical information about compensation when advertising for a new job opportunity, promotion or transfer.

The legislation is applicable to all but the smallest businesses state-wide; excluding only businesses with fewer than four employees and temporary help firms.  It specifically requires that compensation or compensation ranges be disclosed to new applicants and current employees when posting a new employment opportunity for internal or public consideration or upon an employee’s request.  An employment opportunity is defined as any job, promotion or transfer opportunity that,”can or will be performed, at least in part, in the state of New York.”  Other important requirements of the legislation include:

  • The mandate that employers post a job description along with salary information, if a description exist.
  • The requirement that commission-based employment opportunities must be advertised clearly in writing as such.
  • The inclusion of civil penalties for employers who do not comply with the new disclosure requirements.

Assuming Governor Hochul approves the legislation, it will be effective 270 days after being signed.  Thereafter, the labor commissioner has been directed to issue rules and regulations to implement the statue and educate employers about their new transparency obligations.

Campanella Law Office will continue to monitor Senate Bill S9427A and will post updates as necessary.  Meanwhile, if you are an employer in New York State, it is important that you review your compensation policies and procedures.  If you would like assistance with that review or have other questions about compliance, Contact Us.

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