NYC Pay Transparency Law Takes Effect: Is Your Company Compliant?
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11.01.22
The long-delayed New York City pay transparency law takes effect today, November 1, 2022. Employers should be careful to review the law’s requirements and ensure compliance – it applies more broadly than many realize:
- The law covers all employers with four or more employees, or one domestic worker, so long as one employee is based in NYC. Notably, the requirements extend to employment agencies acting on behalf of such employers.
- Covered employers must include a good faith salary or hourly pay range in all job postings and advertisements.
- The law applies to any position a covered employer posts that could be performed in NYC.
Remote positions, which could be performed in NYC, present a potential pitfall. Covered employers must therefore be careful to post compensation ranges in any job advertisement or posting for a remote position, even when hiring to support an office outside of NYC.
Notably, the law does not require disclosure of all compensation—only the base compensation rate. Employers do not, for example, need to disclose bonuses, severance pay, overtime, insurance benefits, leave or any other form of expected compensation.
If a covered employer fails to comply with the pay transparency law, the mistake can prove costly. The law allows employers to cure their first violation if it is corrected within 30 days of receiving notice from the NYC Commission on Human Rights. Violations that are not timely cured, and subsequent violations, can result in civil penalties of up to $250,000 per violation. Accordingly, employers impacted by NYC’s new requirements should ensure compliance and promptly correct any errors identified by violation notices.
Please contact us if you have any questions concerning compliance with NYC’s new pay transparency requirements.
Author Matthew J. McDonald is a partner in the labor & employment practice group at Klehr Harrison. He can be reached by email at mmcdonald@klehr.com and by phone at 215-569-4287.