New York Pay Transparency Law: What NY and NJ Employers Need to Know

(Updated May 15, 2026)

New York State’s pay transparency law became effective on September 17, 2023, and requires covered employers to disclose compensation information in advertisements for jobs, promotions, and transfer opportunities.

The law applies to many employers operating both inside and outside New York and can impact remote and hybrid positions that report into New York offices or supervisors. Employers must also include a job description in the posting if one exists.

While there are still gray areas in the law, one thing is clear: employers with operations in New York or New Jersey should review their hiring practices, compensation structures, and job posting procedures now.

This article answers common questions about the New York pay transparency law, explains how it may apply to remote and out-of-state positions, and outlines practical compliance steps employers should consider taking.

Which Employers Must Comply with the New York Pay Transparency Law?

The New York State pay transparency law applies to employers with four or more employees.

Covered employers include:

• Private employers

• Employment agencies and recruiters

• Businesses connecting applicants with employers

The law does not apply to temporary help firms advertising jobs for clients.

Unlike the New York City pay transparency law, independent contractors are not counted toward the four-employee threshold.

What Compensation Information Must Be Included in Job Postings?

Covered employers must disclose:

• The minimum and maximum annual salary or hourly wage the employer, in good faith, believes to be accurate at the time of posting

• A fixed compensation amount if there is no range

• Whether the position is commission-based

• Compensation details for positions involving both wages and commissions

If a job description exists, it must also be included in the posting.

Does the NY Pay Transparency Law Apply to Internal Job Opportunities?

Yes.

The law applies to advertisements made available to a pool of potential applicants for internal or public viewing, including electronic postings.

As a result, employers must comply with the law for:

• External job advertisements

• Internal promotion opportunities

• Transfer opportunities posted within the company

When Does the New York Pay Transparency Law Apply Outside New York?

The law applies to positions that:

• Will physically be performed, at least in part, in New York State; or

• Will physically be performed outside New York but report to a supervisor, office, or worksite located in New York

This broad language means many remote and multi-state employers may still fall within the law’s scope.

Frequently Asked Questions About the NY Pay Transparency Law

Does the law require employers to post every job opening?

No.

The law does not require employers to create postings for every job, promotion, or transfer opportunity. Employers may still hire, promote, or transfer employees without creating an advertisement.

However, once an employer chooses to post an opportunity, the posting must comply with the law.

A New York employer wants to advertise a fully remote position reporting to a supervisor in New Jersey. Does the law apply?

Possibly not.

The amended law applies to positions physically performed in New York or positions performed elsewhere that report to a supervisor, office, or worksite in New York.

If the position:

• can be performed entirely remotely from anywhere; and

• reports only to a New Jersey office or supervisor

there is a strong argument that the New York law does not apply.

However, employers should still evaluate whether New Jersey pay transparency laws apply.

What if the remote employee must occasionally attend meetings in New York?

Likely no.

According to guidance interpreting the law, occasional attendance in New York for meetings, conferences, or communications with New York-based employees generally is not enough to make the position one “performed” in New York State.

Again, employers should separately analyze compliance obligations under New Jersey law.

What if the employee works exclusively in New Jersey but reports to a manager located in New York?

Yes.

The New York pay transparency law expressly applies to positions physically performed outside New York when the employee reports to a New York supervisor, office, or worksite.

Employers in this situation may need to comply with both New York and New Jersey pay transparency requirements.

Can Employees or Applicants Sue for Violations?

The law does not create a private right of action.

Instead, applicants or employees may file complaints with the New York Labor Commissioner.

Violating employers may face civil penalties of up to $3,000 depending on:

• Employer size

• Good faith efforts to comply

• Severity of the violation

• History of prior violations

The law also prohibits retaliation against applicants or employees who exercise rights under the statute.

Practical Steps Employers Should Take to Comply

The purpose of pay transparency laws is to reduce pay inequities and discriminatory compensation practices through upfront disclosure of compensation information.

Employers should consider taking the following steps:

Review and Update Job Descriptions

Create, revise, and maintain accurate job descriptions for all positions.

Document Compensation Ranges

Establish good-faith salary and hourly wage ranges for all positions and review them regularly.

Evaluate Reporting Structures

Review whether out-of-state employees report to supervisors or offices located in New York.

Review Compensation Practices

Analyze pay practices and salary-setting procedures to identify potential disparities and inconsistencies.

Update Job Posting Templates

Ensure internal and external job posting templates include:

• Compensation ranges

• Required commission disclosures

• Job descriptions where applicable

Train Human Resources and Hiring Personnel

Employees responsible for recruiting, hiring, promotions, and internal postings should understand the law’s disclosure requirements.

Work With Employment Counsel

Pay transparency laws often expose compensation disparities that can create employee relations issues or lead to discrimination and equal pay claims.

Experienced employment counsel can help employers:

• Conduct proactive pay audits

• Review compensation structures

• Reduce litigation exposure

• Update policies and hiring procedures

• Address equal pay and discrimination risks before they become legal disputes

New York and New Jersey Employers Should Prepare Now

Pay transparency laws are expanding rapidly throughout the Northeast, including New York City and New Jersey. Multi-state employers should review all hiring, compensation, and internal posting practices to ensure compliance with overlapping state and local requirements.

Employers with questions about pay transparency compliance, compensation practices, or employment law risks should consult experienced counsel. Fellig Schwartz, LLC counsels businesses and management throughout New York and New Jersey on employment law compliance, hiring practices, workplace policies, and employment disputes.

About the Author

Audra Schwartz is a partner at Fellig Schwartz, LLC, where she advises businesses and management on employment law compliance, workplace policies, restrictive covenant disputes, compensation issues, and business litigation matters throughout New York and New Jersey. She counsels employers on hiring practices, wage and hour issues, employee separations, discrimination and retaliation claims, and employment agreements.