New York City Enacts Pay Transparency Law

Written by Christie Del Rey-Cone

Employers in the Big Apple will soon be required to be more transparent about a position’s salary range, following a recent slew of pay transparency legislation nationwide. Effective May 14, 2022, employers must include the minimum and maximum salary range when advertising a job, promotion, or transfer opportunity located within New York City. 

Requirements

The new law amends the New York City Human Rights Law (NYCHRL) and applies to job postings published on any form of media. The posted salary range should include “the lowest to the highest salary that the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion, or transfer opportunity.” The law applies to all New York City employers with four or more employees, including independent contractors.

Enforcement

Failure to include a salary range with an advertised job, promotion, or transfer opportunity will be considered an “unlawful discriminatory practice” under the NYCHRL. Resulting fines may be up to $125,000.

Exceptions

Temporary staffing agencies advertising temporary positions are exempt from the new law as they are already required to provide salary information to interviewees.

Takeaway

New York City employers with more than four employees should review salary ranges for existing positions and begin taking steps to comply with the new law by May 14, 2022.  Notably, the new law does not define “salary” and “advertise,” or differentiate between jobs that are posted externally versus internally. Therefore, employers should consult with their trusted employment counsel to ensure compliance.

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