Employers: Are You Ready for Pay Transparency?
With the NYS Pay Transparency rules going into effect September 17th, employers with 4 or more employees need to be prepared to implement these new rules. NYS will be releasing guidance in the near future to assist employers with compliance. There are also numerous articles available to help employers understand the details and requirements.
In the meantime, below are 10 steps to help get you started:
· Review your compensation practices and pay structures and update as needed.
· Determine the good faith salary or range for each position you post. Document rationale in case of a challenge later.
· Review and update employee job descriptions, if you have them. Include supervisors and employees in the process to ensure accuracy.
· Review existing job postings and update to include salary/range and link to job description. Also update your job posting templates (for both internal and external job postings) and ensure they include salary/range and a link to the full job description.
· Train supervisors, managers, and recruiters on the new pay transparency rules including how pay and ranges are determined. This will help to avoid discrepancies and misinformation.
· Review remote positions to determine reporting structure and prepare to comply as needed for those reporting into a NYS manager or location.
· Check pay transparency laws in other states/areas where you have offices/locations to ensure compliance.
· Work with your attorney to review existing employee pay to identify potential pay equity issues and risk areas for discrimination claims.
· Communicate pay transparency changes to employees based on your compensation plan.
· Develop a Q&A document to help guide managers as questions arise.
Preparing in advance is important since any business found in violation of the provisions will be subject to civil fines as follows: $1,000 for the first violation, $2,000 for the second violation, $3,000 for the third violation and beyond. There is no private right of action, but individuals may file a complaint with the NYS DOL commissioner. Employers should note that there is also an anti-retaliation provision in the law.
Greater Rochester Chamber members may contact our HR Helpline staff for guidance on this and other HR topics: Kathy Richmond at (585) 256-4618, Jennifer Suppé at (585) 256-4608, or Cindy Owen at (585) 256-4606. Watch our events calendar for future Friday HR Briefings on pay transparency, mental health in the workplace, and other topics!
The information provided above is a brief list of suggested actions and should not be construed as a legal opinion. Employers should work closely with their attorney to ensure compliance with this law. If you need an employment law attorney, you can always search for member law firms in our membership directory.