Compliance Reminder - NYC Pay Transparency Law Takes Effect November 1, 2022

The NYC Pay Transparency Law will go into effect this week. Starting November 1, 2022, employers with four or more employees advertising jobs in NYC must include the minimum and maximum salary that the employer believes in good faith at the time of the posting they are willing to pay for the advertised job, promotion, or transfer opportunity.

Employers can access the City’s most recent and complete guidance here, but below are a few highlights:

  • Employers should comply with the new requirements when advertising for positions that can or will be performed, in whole or in part, in NYC, whether from an office, in the field, or remotely from the employee’s home.
  • "Good faith” means the salary range the employer honestly believes at the time they are listing the job advertisement that they are willing to pay the successful applicant(s).
  • Salary includes the base annual or hourly wage or rate of pay, regardless of the frequency of payment, and does not include other forms of compensation or benefits (e.g., health insurance, severance pay, or 401(k)).
  • An “advertisement” is a written description of an available job, promotion, or transfer opportunity, regardless of the medium by which the description is disseminated (e.g., internal bulletin boards, internet ads, printed flyers).

Only current employees may sue an employer directly for violations of the law, and although members of the public may file complaints, the Commission will not assess a civil penalty for the first complaint alleging a violation of the salary transparency provision, provided that the employer shows it has fixed the violation within 30 days of receiving the Commission’s notice of the violation.

To comply with the law, employers should at a minimum ensure all job postings from November 1, 2022 forward include a salary range. Since these salary ranges will become public and will likely be closely reviewed by current and prospective employees, employers would be wise to document the factors used to determine the salary range for a given position and the factors that may impact variation within the stated range, such as years of experience or education.

If employers have questions about compliance with the NYC Pay Transparency Law, or are thinking about an audit but don’t know where to begin, now is the time to contact employment counsel. As always, Kelley Drye attorneys are available to answer questions and to assist with compliance.