NYC Enacts Pay Transparency Law Requiring Employers to Disclose Salary Ranges

Employers will soon be required to include salary ranges in advertisements for jobs, promotions or transfer opportunities for positions located within New York City.

On December 15, 2021, the New York City Council passed Int. No. 1208-2018-B, requiring employers to be more transparent about offered salaries for jobs located in New York City. The bill became law on January 15, 2022 and is set to take effect on May 15, 2022. The new law amends the New York City Human Rights Law (“NYCHRL”) to make it an unlawful discriminatory practice for a covered employer to omit from job advertisements the minimum and maximum salary offered for job positions located within New York City. The purpose of the new law is to help reduce pay inequities by providing more transparency.

The law applies to all employers with at least four employees in New York City, and independent contractors are counted towards that threshold. However, the law does not apply to temporary positions advertised by temporary staffing agencies.

To comply with the new law, employers must provide in job advertisements a range for the position that extends 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 job, promotion or transfer opportunity. However, Int. 1208-2018 does not define “advertisement” or distinguish between internal and external advertisements, meaning that employers should plan to include salary ranges in all job postings. The new law also does not currently define “salary” making it unclear whether salary disclosure is required for all positions, whether exempt or non-exempt. The New York City Commission on Human Rights is expected to issue further guidance on the new law and provide clarity as to the new requirements.

All covered employers in New York City should take steps to ensure compliance with these new pay transparency requirements. Noncompliance with this law can have serious consequences for employers as violations of the NYCHRL can result in compensatory damages, punitive damages, attorneys’ fees, and civil penalties.

For more information about this change in New York City employment law and to remain updated on all developments, please contact the authors listed below.