NYC Pay Transparency Law became effective on November 1, 2022.
What does this mean for employers?
If you have four or more employees (including independent contractors) you are required to post minimum and maximum salary ranges for available positions for the benefit of current and prospective employees.
Failure to comply can result in significant civil penalties and monetary damages to affected employees.
This new law is part of a growing trend across the country in other states to encourage pay equity.
The law was originally supposed to go into effect on May 15, 2022, but after receiving pushback from various groups over ambiguities in the law, lawmakers enacted amendments and postponed its effective date until November 1, 2022.
The New York City Council amended the law to clarify:
- Both hourly wage and salaried jobs are subject to the statute
- Only current employees may bring an action against their employer for failing to comply
A statewide bill proposing a similar pay transparency law was passed by the New York State Legislature in June 2022. The bill is currently under consideration by Governor Hochul, and, if enacted, will take effect 270 days after it is signed into law.
The NYC Commission on Human Rights has the authority to enforce violations on behalf of applicants.
Here’s what employers can do to prepare themselves for the enactment of this new law.
- Be consistent across the board in setting compensation levels for job positions.
- Conduct an audit of pay practices to ensure that there are no existing discrepancies that point to discrimination.
- Don’t rely on job titles in setting salaries and wages. Instead, make sure job responsibilities and duties dictate salary or wage ranges. This is an opportunity to review job titles to ensure that they refer to different jobs, and do not t perpetuate disparate pay rates or practices.
For New York State employers outside of New York City, there’s no time like the present to begin complying with the law’s requirements so that they can hit the ground running once it’s signed into law (which it will be).