Hiring someone new should be exciting, not risky. However, New York employers must pay close attention to what they include in every written job offer. Thanks to New York State’s Pay Transparency Law, it is no longer enough just to send a letter with the job title and vague salary terms. A job posting must include specific language; otherwise, there are real consequences.
If your business has four or more employees, the Pay Transparency Law (Labor Section 194-b) applies. Furthermore, it doesn’t just apply to new hires in New York. It also covers any job that reports to a New York office or supervisor, even if the employee works remotely in another state.
What Every Job Posting Must Include
Under the Pay Transparency Law, businesses are required to include the pay range for the position in the job posting. This can be an annual salary or an hourly rate, but it must include both the minimum and maximum amounts the company is willing to pay. Open-ended ranges (like “$60,000 and up”) are not allowed.
If the job has a fixed rate (example: $30 an hour), your business needs to include that exact number. If compensation is 100% commission-based, that must be disclosed clearly. If the company plans to include other forms of compensation or benefits (such as bonuses, paid time off, or healthcare), it should be disclosed in a separate section of the offer.
Employers must also make a good-faith effort to determine the salary range. That means employers can’t just make up numbers. The range should reflect what the company actually expects to pay for the role based on current information. If the company gathers more details during the hiring process and wants to revise the range, the company may do so, so long as the final posting follows the law.
The Risk of Getting It Wrong
Failing to follow these rules poses significant risks. The New York State Department of Labor may investigate violations. If found liable, Employers face civil penalties of up to $1,000 for a first offense, $2,000 for a second offense, and $3,000 for every subsequent offense. While employees have no private right of action to sue for violations; complaints may be made by current or potential employees, or even by unions and advocacy organizations acting on their behalf.
The Department of Labor is also authorized to act on its own if it gets a tip from the public or sees a pattern of noncompliance. In other words, enforcement is not limited to employee complaints. If your company’s job postings skip required disclosures, that’s enough to trigger an investigation.
Employers are also prohibited from punishing employees who discuss their pay. Transparency isn’t just about hiring, it is part of a broader push toward wage equity across the state. By providing applicants and employees with better access to pay information, the state aims to reduce wage gaps and promote fairer compensation practices.
Moving Forward with Clarity
Adding these disclosures to your job postings isn’t just about avoiding fines; it’s also about ensuring transparency and compliance. When done well, they also help build trust. Clear salary ranges make the hiring process smoother, limit misunderstandings, and reduce wasted time for everyone involved. Candidates know what to expect. Employers don’t waste time with applicants who are looking for something completely different.
Still, implementing these changes takes planning. Your job posting templates need to be updated. HR and hiring managers need to understand what qualifies as a good-faith range. And legal review is essential to make sure your offer process doesn’t create more problems than it solves.Rodriguez-McCloskey PLLC works with New York businesses to ensure job postings meet current legal standards. If you are not sure what language to use or how to apply the pay transparency law to your hiring process, we can help you get it right and keep your focus where it belongs: building your team.
