New York City’s Pay Transparency Law

As previously advised New York City’s Pay Transparency Law (the “Transparency Law”) requiring most New York City employers to disclose salary ranges in their job postings, takes effect on November 1, 2022.  Guidance recently issued by the New York City Commission on Civil Rights (the “Commission”) gives further insight into the employer requirements of this new law.

Under the Transparency Law, employers with four or more employees or one or more domestic workers, must include a good faith minimum and maximum salary range in all job advertisements, promotions, and transfer opportunities for work to be performed in New York City.

Job advertisements for temporary employment at a temporary help firm, such as a staffing agency, are specifically exempted from these disclosure requirements.

“Four or more employees” includes independent contractors and employed family members.  Moreover, all four of the employees do not need to work in the same location nor work in New York City – so long as the advertised position will be performed by one individual in the City the requirements apply.

 “Job advertisements” for work to be performed in New York City include any internal posting, internet advertisements, flyers, and any other written description of an available job. However, employers are free to hire employees without using an advertisement and are not required to create an advertisement before hiring.

“Salary” includes the base annual or hourly wage or rate of pay, regardless of frequency of payment. Salary does not include other forms of compensation or benefits offered such as health, life, or other employer-provided insurance; paid or unpaid time off work; the availability of or contributions towards retirement or savings funds; severance pay; overtime pay; commissions, tips, bonuses, stock, or employer-provided meals or lodging.

Information that must be included:  Employers must include the minimum and maximum salary they in good faith believe at the time of the posting they are willing to pay for the advertised position.  The salary range cannot be open ended. For example, “$15 per hour and up” or “maximum $50,000 per year” would not meet the requirement. If an employer has no flexibility in the salary, the minimum and maximum salary may be identical, for example “$20 per hour.”

Enforcement: The NYC Commission on Civil Rights is responsible for enforcement.  Failure to comply with posting requirements is deemed an “unlawful discriminatory practice” under the NYC Human Rights Law, punishable by civil penalties of up to $250,000. Employers will be afforded a 30-day period to cure a first alleged violation; subsequent violations will be subject to penalties.

To ensure compliance with the new legal requirements, employers must ensure that these salary range requirements are incorporated into any advertisement for job opportunities that may be performed in New York City. If you have questions regarding compliance with New York City’s Transparency Law, please contact the Labor & Employment attorneys at Lindabury, McCormick, Estabrook & Cooper, P.C.