A recent amendment to the New York City Human Rights Law aimed at promoting wage equity for women and minority groups historically receiving less compensation than other groups will have a large impact on recruiting practices for City employers. By doing so, New York City joins a national trend of legislative initiatives promoting transparency and equity in compensation practices.
Beginning on May 15, 2022, employers with four or more employees (which includes independent contractors and employed family members) must include a minimum and maximum salary range in all job listings. This includes advertised jobs, promotions, and transfer opportunities. The range of the minimum and maximum salary may extend from the lowest to the highest salary the employer “in good faith believes at the time of the posting” it would pay for the advertised position.
While the term “salary” is not defined in the law, employers should comply with the minimum and maximum rage requirements regardless of whether the position is paid on a salary or hourly basis. It is not clear whether these requirements only apply to jobs that will be located in New York City, or if it extends to any job postings in New York City regardless of where the job will be physically located. The New York City Commission on Civil Rights is expected to issue regulations clarifying these issues.
Failure to comply with the posting requirements is labeled as an “unlawful discriminatory practice” under the NYC Human Rights Law, punishable by civil penalties of up to $125,000. These requirements will not apply to employers with less than four employees or to postings for “temporary employment at a temporary help firm.”
To avoid exposure to penalties when these new requirements go into effect, employers should exercise caution in setting “good faith” salary ranges for positions moving forward. Be on the lookout for additional notifications from Lindabury providing details if further guidance is issued.