Beginning on May 15, 2022, New York City employers will be required to include a good faith salary range for every job, promotion, and transfer opportunity they advertise.
Violations of this new law will be an unlawful discriminatory practice under the New York City Human Rights Law (“NYCHRL”). A recent fact sheet issued by the New York City Human Rights Commission (the “Commission”), linked here, clarifies that the law applies to all employers who employ four or more employees (included in that count are business owners). The law also covers employment agencies who promote job listings they seek to fill, and applies to any job that “can or will be performed, in whole or in part, in New York City, whether remotely from an office, in the field, or remotely from the employee’s home.”
The Commission’s fact sheet states that employers must include the minimum and maximum salary that the employer in good faith believes at the time of the posting they are willing to pay for the job. By way of example, the Commission makes clear that statements that a job calls for “$15 per hour and up”, or “maximum $50,000 per year” would not comply with the new law. However, salaries listed in a posting need not include benefits such as health insurance, life insurance, paid time off, or overtime offered by the job. Companies found to have violated the law may have to pay damages of up to $250,000.00, among other affirmative relief like posting notices, or updating policies.
There is potential for the effective date of the salary transparency law to be delayed to November 1, 2022 after the recent introduction of a new bill before the City Council that would do just that. We will continue to monitor and report on further developments regarding that bill. Nevertheless, we believe that employers should prepare themselves to comply with the law’s new rules in case they go in effect as currently scheduled on May 15, 2022. For any questions, or to receive individual guidance on the City’s new law, contact Mattiace Tetro LLC.