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A06529 Summary:

BILL NOA06529A
 
SAME ASSAME AS S05598-B
 
SPONSORJoyner
 
COSPNSRJackson, Steck, Jacobson, Barron, Simon, Dinowitz, Seawright, Lunsford, Clark, Bronson, Cruz, Reyes, Gonzalez-Rojas, Burgos, Epstein
 
MLTSPNSR
 
Add §194-b, Lab L
 
Requires employers to disclose compensation or range of compensation to applicants and employees upon issuing an employment opportunity for internal or public viewing or upon employee request.
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A06529 Actions:

BILL NOA06529A
 
03/19/2021referred to labor
05/19/2021amend and recommit to labor
05/19/2021print number 6529a
05/24/2021reported referred to codes
06/02/2021reported referred to rules
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A06529 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6529A
 
SPONSOR: Joyner
  TITLE OF BILL: An act to amend the labor law, in relation to requiring employers to disclose compensation or range of compensation to applicants and employ- ees   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to decrease wage discrimination by requiring employers to disclose salary ranges to applicants and employees.   SUMMARY OF PROVISIONS: Section one of the bill establishes the mandatory disclosure of compen- sation or range of compensation and delineates when such a requirement applies to an employer. It also establishes the requirement for salary disclosure to existing employees and the manner of such disclosure. It protects applicants and current employees from actions by employers as a result of exercising their rights to request salary disclosure. The legislation provides the Department or Labor with the power to promul- gate regulations to implement this legislation and enforce its provisions. It also requires the Department to commence a public aware- ness campaign to educate employers regarding the requirement. Section two of the bill establishes the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): The amended version of the bill makes changes to the available remedies for applicants and employees.   JUSTIFICATION: Wage discrimination in hiring plays a central role in perpetuating the wage gap between men and women. Women applying for a new position and/or for internal job promotion often face implicit and structural barriers that result in lower salaries. This is compounded for women of color, women with disabilities, LGTBQ+ individuals and mothers. By enhancing transparency around compensation at the start of the hiring process and limiting the role of implicit employer bias, this bill serves to empower applicants with critical information, prevent wage discrimination, reduce negative negotiation outcomes and address systemic gender-based wage disparities that originate during the hiring process. It will also protect current employees against retaliation for exercising these rights, consistent with the provisions of section 215 of the Labor Law. Additionally, salary transparency is a growing trend with more than 25% of companies reporting it as company policy and another 25% considering instituting this "best practice," according to a recent survey. Compa- nies like Buffer, Google and Starbucks have found that it positively affects recruiting and retaining talent, and workforce motivation and performance. It creates clarity in pay structures and job descriptions, which helps reduce the gender and racial wage and opportunity gap. For workers, there is research pointing to equalization of negotiations which is important for women, fairer wages, reduction of job uncertainty and increased job satisfaction.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: This act shall take effect 180 days after it shall have become a law.
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A06529 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6529--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 19, 2021
                                       ___________
 
        Introduced  by M. of A. JOYNER, JACKSON, STECK -- read once and referred
          to the Committee on  Labor  --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the labor law, in relation to requiring employers to
          disclose compensation or  range  of  compensation  to  applicants  and
          employees
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The labor law is amended by adding a new section  194-b  to
     2  read as follows:
     3    §  194-b.  Mandatory  disclosure  of  compensation or range of compen-
     4  sation. 1. a. Upon issuing an employment  opportunity  for  internal  or
     5  public  viewing  an  employer shall disclose the following in writing or
     6  electronically:
     7    (i) the compensation or a range of compensation  for  such  employment
     8  opportunity;
     9    (ii) the job description for the position, if such description exists;
    10  and
    11    (iii) a general description of all benefits and other forms of compen-
    12  sation to be offered.
    13    b.  An  employer  shall  provide  a current employee with the range of
    14  compensation in place at the time of such employee's request and the job
    15  description, if such description  exists,  for  the  employee's  current
    16  position  at  the  time  of hire and upon the employee's request, but no
    17  more frequently than once per year.
    18    2. No employer shall refuse to interview,  hire,  promote,  employ  or
    19  otherwise  retaliate  against an applicant or current employee for exer-
    20  cising any rights under this section.
    21    3. The commissioner may promulgate rules and regulations to effectuate
    22  the provisions of this section.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10082-02-1

        A. 6529--A                          2
 
     1    4. The department shall conduct a public awareness outreach  campaign,
     2  which  shall  include  making  information  available on its website and
     3  otherwise informing employers of the provisions of this section.
     4    5.  a.  Any  person  claiming  to  be aggrieved by a violation of this
     5  section may file  with  the  commissioner  a  complaint  regarding  such
     6  alleged  violation  for an investigation of such complaint and statement
     7  setting the appropriate remedy, if any, pursuant to  the  provisions  of
     8  section one hundred ninety-six-a of this article
     9    b.  An  employer  who  fails  to  comply  with any requirement of this
    10  section or any  regulation  published  thereunder  shall  be  deemed  in
    11  violation  of  this  section  and shall be subject to a civil penalty in
    12  accordance with section two hundred eighteen of this chapter.
    13    6. An employer shall keep and maintain  necessary  records  to  comply
    14  with the requirements of this section including, but not limited to, the
    15  history  of  compensation ranges for each employment opportunity and the
    16  job descriptions for such positions, if such descriptions exist.
    17    7. For the purposes of this section the following terms shall have the
    18  following meanings:
    19    a. "range of compensation" means the range that the employer  actually
    20  relied  on in setting compensation for the position and may be based on,
    21  including but not limited to, any applicable pay scale  or  compensation
    22  model  relied  upon  by the employer or the actual range of compensation
    23  for those currently holding the position.
    24    b. "employer" shall include, but not be limited to:
    25    (i) any person, corporation, limited liability  company,  association,
    26  labor  organization or entity employing an individual in any occupation,
    27  industry, trade, business or service, or any agent thereof; and
    28    (ii) any person, corporation, limited liability  company,  association
    29  or  entity  acting  as  an  employment  agent or recruiter, or otherwise
    30  connecting applicants with employers.
    31    § 2. This act shall take effect on the one hundred eightieth day after
    32  it shall have become a law.
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