May 18, 2026
Unequal Pay Remains a (Legal) Challenge for Employers
By Leona Hansen
Recent data released by the New York Department of Labor on Equal Pay Day shows New York outperforming the national average on gender pay equity. Women working full-time, year-round in New York State earn approximately 91.4 cents for every dollar earned by men, compared to 81 cents nationally. While this progress reflects the impact of state-level legal initiatives, it also underscores an important reality for employers: equal pay is not just a policy goal—it is a legal requirement enforced through a range of statutory mandates.
Equal Pay Day, which fell on March 26 this year, is observed annually to highlight the persistence of the gender wage gap despite more than six decades of legal protections. Data from the U.S. Census Bureau shows consistent trends: the gap begins as soon as women enter the workforce and widens over time. Women ages 15 to 24 working full-time typically earn about 89 cents for every dollar earned by their male counterparts, while women ages 45 to 64 earn closer to 77 cents.
The causes of the wage gap are complex. Even after accounting for factors such as education, experience, industry, and geography, a significant portion of the gap remains unexplained and is commonly attributed to discrimination. In response, state and local laws have expanded protections well beyond the federal Equal Pay Act, which made sex-based wage discrimination illegal in 1963.
In New York, employees are entitled to equal pay for “substantially similar work,” measured by the skill, effort, and responsibility required, and the conditions under which the work is performed. Employers in New York must also comply with laws governing the handling of salary information. For example, employees cannot be prohibited from discussing their pay, asking about compensation, or disclosing their own wages.
Employers are also prohibited from seeking or relying on an applicant’s salary history as a condition of employment, promotion, or interview. Specifically, they may not ask applicants or current employees to provide their salary history.
Salary transparency requirements impose additional obligations. Employers in New York State with four or more employees must include a salary, hourly rate, or a good-faith minimum and maximum range in job postings for positions performed in New York or reporting to a New York office. In New York City, the Salary Transparency Law requires employers to state the minimum and maximum salary they in good faith believe at the time of the posting they are willing to pay for the advertised job, promotion, or transfer opportunity.
For employers, proactive compliance is essential to reducing legal risk and promoting fairness in the workplace. Regular internal pay audits can help identify pay disparities and support compliance efforts. Employers should also review their policies and practices to ensure alignment with current pay transparency and anti-discrimination requirements. If you have questions about pay equity compliance or related obligations, please reach out to any Book Law LLP attorney or Leona Hansen at lhansen@booklawllp.com.
