Our Focus Is Helping You Launch And Keep Your Startup In Orbit

Explaining New York City’s new pay transparency law

by | Oct 28, 2022 | Firm News

The New York City Human Rights Law (the “NYCHRL”) has been amended to require employers to include a good faith salary range for all advertised job, promotion and transfer opportunities. This amendment is referred to as a pay transparency law. This law takes affect on November 1, 2022.

This law covers employers that have four or more employees, so long as at least one employee works in New York City. There are two exceptions to this rule, but they are narrow and apply to employment agencies. This law covers three kinds of job postings: (i) any advertisement for a job, promotion or transfer opportunity that can or will be performed in New York City, whether or not it is a remote position; (ii) all job postings seeking full time or part time employees, interns, domestic workers, independent contractors, or any other category of worker protected by the NYCHRL; (iii) the position’s salary includes the base annual or hourly wage or rate of pay, regardless of frequency of payment. Other forms of compensation or benefits do not need to be included in these advertisements. Any enterprise of the minimum size and with any number of employees in New York City should be on notice of these guidelines.

The New York City Commission on Human Rights (the “Commission”) will investigate employer’s compliance with the law. Individuals may file claims against an employer who violates the NYCHRL. The Commission will not assess a penalty for an employer’s first violation so long as it is cured within 30 days. The Commission will assess penalties of up to $250,000 for the first uncured violation and all subsequent violations. The Commission may also require non-compliant employers to pay damages or provide other forms of affirmative relief to affected employees.