Employer and employee shaking hands

New York City’s Salary Transparency Law Takes Effect November 1st

New York City’s pay transparency law, requiring most employers to disclose salary ranges in their job postings, takes effect on November 1, 2022. As we previously reported, the new requires employers that post a job for a position that will or can be performed in the city (at least in part) to disclose the minimum and maximum annual salary or hourly wage. 

Highlights of the NYC Pay Transparency Law

Covered employers include employers with four or more employees, including independent contractors, as long as at least one employee works in New York City. Employment agencies of all sizes are also covered; however, temporary agencies that advertise temp positions are exempt because such agencies are already required to disclose pay information under the New York State Wage Theft Prevention Act.

The NYC Commission on Human Rights issued guidance clarifying that the disclosed salary must be the base annual or hourly wage or rate of pay and include both a minimum and maximum. Employers can post positions with the same minimum and maximum salary, for example, “$20 per hour.” However, the hourly salary range cannot be left open-ended, such as by posting “$15 per hour and up.”

Also, employment advertisements need not include other forms of compensation in connection with an advertised job, such as:

  • Health insurance
  • Overtime pay
  • Commissions
  • Tips
  • Bonuses
  • Stock options
  • Paid time off

Covered job listings include:

  • Advertisements with a written description of an available job, promotion, or transfer opportunity publicized to a pool of potential applicants (including existing employees)
  • Advertisements on internal bulletin boards, internet advertisements, printed flyers distributed at job fairs, and newspaper advertisements

Finally, the guidance clarifies that employers are (1) not prohibited from hiring without posting jobs or (2) required to create job advertisements. 

Next Steps For Employers

Covered employers should ensure positions they anticipate advertising, or continue to advertise, comply with the pay transparency law by the Nov. 1st effective date. This includes any active listings on the company’s website, third-party posting websites (e.g. LinkedIn, Indeed), or job advertisements through an employment agency. Employers should also review their job descriptions and document factors used to determine the salary range for a position. 

What the NYC Pay Transparency Law Means for Employees

New York City’s new pay transparency law intends to foster pay equity and reduce pay discrimination. A similar statewide pay transparency law, passed by the state legislature in June 2022, has yet to be signed by Governor Hochul. Whether these initiatives will be successful remains to be seen. In the meantime, if you suspect you suffered discrimination regarding pay or any other term or condition of employment, talk to a New York City employment lawyer.