New York City took the next step to expand its pay transparency laws. Effective May 15, 2022, job postings must include the minimum and maximum salary offered for any position located within New York City. This amendment to the New York City administrative code allows for employers to be held responsible for an unlawful discriminatory practice if the salary is not included in job listings. Employers will have to include the salary range in all announcements or postings regarding promotion or transfer opportunities as well. The stated salary range may be based on the highest and lowest salary that the employer “in good faith believes” it would pay for the advertised position at the time of its posting. This new law is continuing the pay transparency that began in New York City in 2017, when it became illegal for public and private employers of any size in New York City to ask about an applicant’s salary history during the hiring process.
The law applies to any employer or employment agency with four or more employees in New York City. For purposes of this law, independent contractors working in furtherance of an employer’s business count toward this four-employee threshold. Agents and employees of covered employers are also subject to the law’s disclosure requirements. Thus far, the only exception applies to temporary positions advertised by temporary staffing agencies.
The New York City Commission on Human Rights is authorized to impose civil penalties for violations including fines for up to $125,000 per violation or $250,000 for violations that result from an employer’s willful, wanton, or malicious action. The Commission is expected to issue guidance clarifying whether the salary range requirement applies to all jobs advertised in New York City, or only postings for jobs physically located in New York City. The Commission’s guidance may also help clarify whether this requirement applies to salaried positions or hourly wage positions, and how hourly rates may be required to be disclosed.
If you have any questions regarding New York City’s rule, please contact your labor and employment counsel at Smith, Gambrell & Russell, LLP.