On January 15, 2022, New York City enacted a first-of-its-kind law requiring employers to include a maximum and minimum salary in all job postings for positions located in New York City. The requirement also applies to internal job postings as well as transfers within a company. The new law will go into effect on May 15, 2022. The law will apply to all employers with more than four employees but excludes temporary hiring firms. This means that virtually all employers with employees in New York City will need to comply.
The law amends the New York City Human Rights Law, the anti-discrimination law governing New York City employers. The statute specifically states “It shall be an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise a job, promotion or transfer opportunity without stating the minimum and maximum salary for such position in such advertisement.”
While the law does not require employers to publicly advertise or internally post its open positions, should the employer choose to advertise or post, it must include the salary information.
Employers Can Expect More Guidance
- New York City is expected to issue guidance on compliance with the law. It is expected that more information will be provided as to what constitutes “salary” and whether the advertisement must state whether the position is exempt or non-exempt from overtime pay.
- For employers considering the minimum and maximum salary for a particular role, the law provides only that “the range 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 job (internal and external listings), promotion or transfer opportunity.” We can expect additional guidance on minimums and maximums as well.
- Specific penalties against employers have not been detailed as of yet. However, employers who fail to include the minimum and maximum salary offered for any position located within New York City may be subject to penalties including damages, attorneys’ fees, and fines.
How Employers Can Prepare Now to Ensure Compliance
All New York City employers should take steps to ensure compliance with these new pay transparency requirements by May 15, 2022. To prepare, employers are recommended to:
- Begin to assess existing policies for determining salaries and make adjustments where appropriate
- Develop a process by which employers will ensure that published information in connection with internal and external job postings includes required salary information; and
- Consider an internal audit of current salaries by position as well as exempt/non-exempt classifications.
Gibney will continue to monitor this for guidance updates.
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