New York’s Pay Transparency Bill That Could Ban Salary Expectation Discussions
New York has helped lead the way in pay transparency, implementing laws to promote fair hiring and reduce wage disparities. Now, Assembly Bill 01289 (A01289) proposes a bold next step—prohibiting employers from asking salary expectations before extending a job offer.
New York has helped lead the way in pay transparency, implementing laws to promote fair hiring and reduce wage disparities. In 2023, the state began requiring salary range disclosures in job postings, aligning with similar laws in California, Colorado, and Washington. Now, Assembly Bill 01289 (A01289) proposes a bold next step—prohibiting employers from asking salary expectations before extending a job offer.
If passed, A01289 would make New York the first state in the nation to ban salary expectation inquiries before a conditional offer. This fundamental shift in hiring practices could have far-reaching implications for businesses, requiring them to rethink how they set wages and negotiate compensation.
How Pay Transparency Law Works in New York Today
New York’s Labor Law § 194-b, which took effect on September 17, 2023, requires employers to disclose a good-faith salary range in all job postings for positions performed in the state or reporting to a New York-based supervisor or office. The law ensures that job seekers have insight into compensation before applying, promoting transparency and fairness in the hiring process.
While this law prevents employers from withholding salary information, it does not regulate how compensation discussions occur during hiring. Many employers continue to ask candidates about their salary expectations, using those responses to shape offers. A01289 seeks to close this gap by eliminating salary expectation inquiries altogether.
How A01289 Would Change Hiring Practices
If enacted, A01289 would prohibit employers from asking about salary expectations at any point before making a conditional job offer. This restriction would apply to all stages of the hiring process, including job applications, interviews, and recruiter conversations.
Applicants may still voluntarily disclose salary expectations, but employers can only confirm them after extending an offer—and only if the applicant requests a higher wage.
Beyond salary discussions, A01289 would also introduce new transparency requirements for employment benefits. Job applicants would have the right to request information about benefits such as health insurance, retirement plans, and paid time off. This ensures that candidates have a fuller picture of total compensation before accepting a role.
Another key provision of A01289 is its private right of action, allowing job seekers to sue employers directly for violations. Unlike New York’s existing pay transparency law, which relies on administrative enforcement, this bill would expose employers to potential litigation, increasing compliance risks.
The First U.S. Law to Restrict Salary Expectation Inquiries
New York’s move to prohibit salary expectation inquiries would be the first of its kind in the nation. While several states, including New York, have already banned salary history inquiries—preventing employers from asking about a candidate’s past wages—no jurisdiction has yet restricted an employer’s ability to ask about expected salary before an offer is made.
Even with mandatory salary disclosures, employers can still shape pay offers based on an applicant’s self-reported salary expectations. For instance, if a company advertises a position with a salary range of $80,000–$100,000 and a candidate states they expect to earn $85,000, the employer may anchor their offer closer to that lower figure, even if they were prepared to pay more.
Salary expectation inquiries can also function as an informal screening tool, allowing employers to filter out candidates before compensation discussions even begin. If a job seeker provides an expected salary above what an employer is willing to pay, they may be removed from consideration—even if they are highly qualified and open to negotiation. This practice can lead to missed hiring opportunities for both employers and candidates, reinforcing pay disparities and limiting upward mobility.
A01289 would fundamentally shift how compensation is determined, ensuring hiring decisions are based on qualifications, not negotiation tactics. Employers would need to rely on structured pay scales and market data, rather than adjusting offers based on self-reported expectations. If enacted, this law could set a national precedent, redefining fair pay practices across industries.
What Employers Need to Know
For employers, A01289 would require a significant shift in hiring practices, salary determination, and compliance policies. The most immediate change would be removing salary expectation inquiries from job applications, recruiter scripts, and interview processes. Companies would need to train hiring managers on the new restrictions and ensure that compensation discussions remain compliant.
This bill would also fundamentally change how salary offers are set. Without being able to gauge an applicant’s expectations, employers would need to rely more heavily on internal compensation benchmarks and market salary data to ensure competitive pay offers. Businesses that previously tailored offers based on candidate feedback may need to rethink their approach to salary negotiations.
Additionally, the introduction of a private right of action means that employers must take compliance seriously to avoid legal challenges. Job seekers who believe an employer has improperly asked about salary expectations could file lawsuits seeking damages, making hiring compliance a potential litigation risk.
Looking Ahead
A01289 is currently before the New York State Assembly’s Labor Committee, though similar proposals have failed in recent years. Its passage remains uncertain, but its introduction signals a broader push toward greater transparency and equity in hiring.
Even if the bill stalls, the trend toward restricting employer discretion in salary negotiations is gaining momentum. Lawmakers across the U.S. continue to focus on wage gaps, standardizing hiring practices, and enforcing fair pay policies—a sign that employers must stay prepared for further regulation.
Employers should stay informed and monitor future developments in pay transparency laws. As legislative efforts continue to evolve, businesses that proactively adapt will be best positioned to maintain compliance, competitiveness, and equity in hiring.
Release Date: February 14, 2025
Alonzo Martinez
Alonzo Martinez is Associate General Counsel at HireRight, where he supports the company’s compliance, legal research, and thought leadership initiatives in the background screening industry. As a senior contributor at Forbes, Alonzo writes on employment legislation, criminal history reform, pay equity, AI discrimination laws, and the impact of legalized cannabis on employers. Recognized as an industry influencer, he shares insights through his weekly video updates, media appearances, podcasts, and HireRight's compliance webinar series. Alonzo's commitment to advancing industry knowledge ensures HireRight remains at the forefront of creating actionable compliance content.