On December 15, 2021, the New York City Council passed a bill that requires employers (and their agents) to list “the minimum and maximum wage” in every “advertisement” for an “employment, promotion or transfer”. On January 15, 2022, this bill, which amended the New York City Human Rights Law (“NYCHRL”) to create Section 8-107(32) (the “Local Law”) , became law when Mayor Eric Adams did not veto it. . On March 22, 2022, the New York City Commission on Human Rights (“CCHR”) issued guidelines (the “Guidelines”) regarding the Amendment.
Requirements of the new law
Local law, currently slated to go into effect on May 15, 2022, will require New York City employers with four or more employees (or one or more domestic workers), to include the minimum and maximum starting wage for any “ advertises job, promotion or transfer opportunity. When setting the minimum and maximum salary for a position, an employer must determine, in good faith, what they believe they would pay for the job, promotion or transfer opportunity advertised at the time of employment. ‘announcement.
Even though local law does not define the term “salary” or state how salary should be disclosed in a job posting, the guidelines state that employers must comply with the required disclosure, whether the position is exempt or not, with respect to any work to be performed in New York.
Although local law does not define the geographic scope of the pay scale requirement, the guidelines provide that it applies to all job openings physically located in New York City, whether the employee works or not in an office, in the field, or from a home in New York. Accordingly, all New York City employers and all employers offering positions located in New York must disclose salary ranges in all job postings (including internal promotion advertisements and transfer opportunities) to any work that will be performed in New York.
The new local law amends New York City human rights law. Accordingly, an employer’s failure to include salary ranges in an offer of employment will constitute an unlawful discriminatory practice under NYCHRL. Any violation of the Amendment could result in action by the CCHR, which can impose civil penalties of up to $125,000 for violations, and up to $250,000 if the violation was found to be willful. gratuitous or malicious. In addition, employees may file suits under local law with the CCHR or in court, where the employee will be entitled to a jury trial. In such proceedings, employees may be awarded back wages, compensatory and punitive damages, and their attorneys’ fees.
New Local Law Revisions
Even though the Pay Transparency Act is slated to go into effect May 15, 2022, a bill introduced to the New York City Council on March 24, 2022 would move the new local law’s effective date to November 1, 2022. , would exclude employers with fewer than 15 employees from having to disclose a minimum and maximum salary or rate of pay, and clarify a number of local law provisions. However, until these proposed revisions become law, employers should be prepared to comply with local law as of May 15.
Next steps for employers
Before local law takes effect, employers must begin reviewing their current job postings (including internal promotion and transfer opportunities, listings on message boards, corporate intranets, and the Internet) ) that are advertised for positions physically located in New York for employees. and independent contractors. All of these ads should be updated to include the minimum and maximum salary or rate of pay for each position. As explained above, this range must be established in good faith. Employers should consider documenting salary ranges for all positions whose incumbents are currently working in New York to help determine salary ranges for vacant positions.