e-Alerts

e-Alert: New York City and Surrounding County’s Salary Transparency Requirements

By August 5, 2022 No Comments

Background

On April 28, 2022, the New York City Council passed legislation that amended the New York City Pay Transparency Law. The original legislation mandates that employers provide applicants with the minimum and maximum salaries for all advertised jobs, including promotions and transfer opportunities, located in the city. The amendment pushed the effective date to November 1, 2022 and offered clarification on geographic scope and penalties for noncompliance. In addition, the city of Ithaca and Westchester County recently passed pay transparency legislation and Albany County has proposed legislation under review.

Summary

New York City’s pay transparency law is another joining a statewide trend of pay transparency requirements on employers in New York. This law requires New York City employers with four or more employees to disclose the minimum and maximum salary range for all job postings for positions within New York City. Posting an open-ended range such as “$15.00 per hour and up” is not acceptable; a minimum and maximum salary range or hourly rate is required.

Employers hiring for remote jobs will still be required to post a salary range, because it would be possible for such positions to be performed, at least in part, in New York City regardless of where the position is actually performed.

In addition to New York City, we are seeing that both Ithaca and Westchester County have implemented similar requirements.

  • Ithaca’s wage transparency requirements go into effect September 1, 2022, making it discriminatory for employers to advertise a job, promotion, or transfer without providing the minimum and maximum hourly or salary rate.
  • Westchester County’s legislation goes into effect November 6, 2022, requiring employers to ensure job postings have the lowest to the highest salary they would pay for the position at the time of the posting.

On June 3, 2022, the New York state senate passed its own legislation Senate Bill 9427 which is very similar to the New York City, Westchester, and Ithaca laws. If the statewide law becomes effective, it will require employers to provide a job description as well as the lowest to highest hourly rate or salary for the job posting. Employers are also required to keep records that show the history of compensation ranges for each job opportunity and the job description for the position. For positions compensated solely on a commission basis, employers can comply with the law by including a general statement that compensation will be based on commissions. The state law also has an anti-retaliation clause that prohibits employers from penalizing employees or applicants for exercising their rights under the law.

Employer Next Steps

  • Train supervisors and managers, especially anyone who is involved in the hiring process to ensure compliance with this law.
  • Employers should start preparing for effective dates by establishing salary ranges, creating job descriptions, and updating job postings.
  • If you are a Full-Service or Virtual HR client and would like our assistance, please email us.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

 

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