A reminder for employers: NY’s Pay Transparency Law takes effect September 17

New state legislation mandates that all employers, regardless of size, must disclose salary ranges for job openings and provide employees with information about their compensation packages. The Pay Transparency Law is set to take effect in New York this weekend, on September 17. The law represents a significant stride toward pay equity and transparency in the workplace, aiming to address pay disparities and promote fairness by allowing workers to better understand their earning potential and enabling them to negotiate salaries more effectively.

Business owners in New York must be aware of the implications of this law. While compliance may initially pose administrative challenges, it will ultimately foster a more equitable work environment.

To best prepare for the change, business owners should review their current pay structures, ensuring they have clearly defined salary ranges for each role. They should also establish protocols for discussing compensation with employees and be ready to provide comprehensive information about benefits, bonuses, and other forms of total compensation.

Below are just a few steps that businesses can take to not only meet the requirements of New York’s Pay Transparency Law but also promote a fair and transparent compensation culture within their organization while mitigating the risk of legal challenges related to pay disparities.

  1. Review and Revise Job Descriptions. Ensure that job descriptions include salary ranges or a clear explanation of how compensation is determined for each position. Update any outdated job postings to comply with this requirement.
  2. Conduct Pay Equity Audits. Evaluate the current pay structure to identify any gender, race, or other disparities in compensation. If discrepancies are found, take steps to rectify them and bring salaries in line with the law’s requirements.
  3. Implement Transparent Salary Policies. Develop and document clear salary policies that outline how salaries are determined, what factors are considered, and howemployees can expect their compensation to progress over time. Communicate these policies to your workforce.
  4. Train HR and Management Teams. Provide training to human resources personnel and managers on the specifics of the law, emphasizing the importance oftransparency and non-discrimination in compensation discussions. Ensure they are well-equipped to answer employee questions and handle negotiations effectively.
  5. Establish Reporting and Documentation Processes. Create standardized reporting and documentation processes for compensation-related matters. This includes maintaining records of salary ranges, job descriptions, and any salary adjustments or negotiations.
  6. Encourage Employee Inquiries. Make it clear to employees that they have the right to inquire about salary ranges and compensation details. Encourage them to ask questions and provide a clear channel, such as a human resources contact, for addressing their concerns.
  7. Regularly Update and Communicate. Stay updated on any changes or amendments to the law and make the necessary adjustments to your policies and practices accordingly. Regularly communicate these updates to your employees to ensure ongoing compliance.

By embracing pay transparency and making necessary adjustments, businesses can easily navigate this new law while promoting a fair and equitable workplace for all employees.

Dyanna Serrano is director of HR services at Employee Retention Solutions, an RDG+Partners company, which provides businesses across Upstate New York with a holistic solution for payroll, employee benefits, and retirement services enhanced by proven technology and boutique-level service for streamlined processes. For more information, visit www.rdg-ers.com (http://www.rdg-ers.com).

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