Starting November 1, 2022, the New York City Pay Transparency Act will require most employers to disclose salary ranges in their job postings.
As we previously reported, under the new law, employers will be required to include the minimum and maximum salary for a position in any job advertisement, internal promotion or job transfer opportunity that would be performed in New York. The minimum and maximum salary for the position should reflect the range that the employer believes in good faith that they would pay for the position at the time of posting. The guidelines issued by the New York City Commission on Human Rights specify that “salary” means the base annual or hourly wage or rate of pay and need not include other forms. compensation or benefits offered with the advertised job, such as commissions, bonuses or overtime. Pay. Also, if the employer has no flexibility in the wage they offer, they can post a wage where the minimum and maximum wage are the same, for example, “$20 per hour”, but cannot leave the pay scale open, such as “$15 per hour and up” or “maximum $50,000 per year”.
The new law amends New York City Human Rights Law and applies to employers who have engaged the services of four or more people in the previous year, so long as at least one people work in New York. Failure to include a position’s salary range in a covered ad is a discriminatory practice that may result in monetary damages to affected employees and civil penalties for uncorrected violations.
New York City is following a growing trend among states pushing for salary transparency in job postings. A statewide bill proposing similar pay transparency requirements was passed by the New York State Legislature in June 2022; while it is currently under consideration by Governor Hochul, if enacted, it will come into effect 270 days after its enactment. Meanwhile, California, Connecticut, and Colorado have already enacted mandatory wage or salary disclosure laws.
Employers must review their job postings and prepare to comply by November 1, 2022.