New York pay transparency law: what your agency's job posts must show
If your agency has four or more employees, every job post needs a pay range.
Since September 17, 2023, New York Labor Law § 194-b requires employers with four or more employees to post a good-faith pay range in every ad for a job, promotion or transfer, plus the job description if one exists. For a job paid on commission, a written statement that pay is commission-based can meet the requirement. New York City has had its own similar law since November 1, 2022.
The two laws
| New York State | New York City | |
|---|---|---|
| Law | Labor Law § 194-b | NYC Human Rights Law |
| In effect since | September 17, 2023 | November 1, 2022 |
| Who's covered | Employers with 4+ employees, plus recruiters | Employers with 4+ employees |
| Which jobs | Performed at least partly in NY, or reporting to a NY supervisor or office | Performed at least partly in NYC |
| What to show | Pay range, and the job description if one exists | Good-faith pay range |
What to put in each kind of post
CSR or account manager
Post an hourly or yearly range: the lowest and highest pay you'd honestly offer. A range of $20 to $80 an hour isn't good faith if you'd never pay $80.
Producer with a base
Post the base salary range. Describing the commission structure is optional but helps candidates compare.
Commission-only producer
The state law lets you meet the pay requirement with a general statement that pay is based on commission.
Remote roles
A remote CSR who reports to your New York office is covered, even if they live in another state.
Common mistakes
- Leaving the range off a promotion. Internal postings count.
- Using a recruiter who skips it. Recruiters and employment agents are covered too.
- A range too wide to mean anything. It must be what you believe in good faith is accurate.
- Forgetting the job description. If you have one, the state law says to include it.
Free tool: once you have a candidate, draft an offer letter that matches the range you posted. About 4 minutes.
Penalties
A person who thinks an ad breaks the state law can complain to the NY Department of Labor. The department can impose civil penalties of up to $1,000 for a first violation, $2,000 for a second and $3,000 for a third or later one. Retaliating against an applicant or employee for raising it is also prohibited.
Where Humai fits
Not every gap needs a new full-time post. Humai matches U.S.-licensed agents who hold New York licenses, checked in NIPR, to work in your AMS under your name. Pay per task, part-time or full-time.
Questions agency owners ask
Does the New York pay transparency law apply to small agencies?
It applies to employers with four or more employees, and to recruiters and employment agents. Temporary help firms are excluded.
What counts as a pay range?
The minimum and maximum annual salary or hourly pay you believe in good faith is accurate when you post the ad.
How do I post a producer job paid on commission?
For a commission-based job, a general statement that pay is based on commission can meet the state law. If the job also has a base salary, posting the base range is the safer route.
Does it cover remote jobs?
The state law covers jobs performed at least partly in New York, and jobs performed outside New York that report to a supervisor, office or work site in New York.
What are the penalties?
The NY Department of Labor can impose civil penalties under Labor Law § 218: up to $1,000 for a first violation, $2,000 for a second and $3,000 for a third or later one.
Do internal promotions count?
Yes. The law covers ads for promotions and transfers, not only outside hires.
Sources
- NY Labor Law § 194-b (pay transparency)
- NY Labor Law § 218 (civil penalties)
- NY DOL: Pay transparency
- NYC Commission on Human Rights: Salary transparency in job advertisements
- Bond, Schoeneck & King: New York adopts statewide pay transparency law
Licensing rules differ by state. This article is general information, not legal advice. Check with your state's department of insurance.