Employees in the state of New York are now free to discuss their compensation in the workplace. The New York Department of Labor (NYDOL) has adopted new regulations that help clarify standards for limitations on inquiry, discussion, or disclosure of wages between employees. Under the regulations, employers cannot prohibit employees from inquiring about, discussing, or disclosing wages. However, limitations may be imposed by issuing a written policy that places “reasonable limitations on the time, place, and manner” that employees may inquire about, discuss, or disclose wages. To validate the limitations, employers must provide a hard copy of the written policy or must display it in a conspicuous location, or make it available electronically on the company’s website. Copies of the written policy must be kept by employers during the period of the applicability and for six years after this period.
The new regulations also state that employers may limit an employee from discussing or disclosing the wages of another employee, unless the other employee provides verbal or written permission. Employers may also limit an employee with access to wage information of other employees as part of that employee’s job duties. The state department of labor will be revising the Notice of Rates of Pay to help both employees and employers understand the new regulations. The Notice of Rates of Pay will include a statement reflecting employees’ rights under Section 194 of the Labor Law and the new rule.
New York employers should start reviewing their policies that limit the discussion of wages. CPC will monitor the release of the updated Notice of Rates of Pay. Make sure to visit our blog soon.