NYC Amends Salary Range Disclosure Law
In January, the New York City Council announced that it would require salary range requirements on job listings for employees working in New York City. The bill intended to increase pay transparency and close the persistent wage gap by providing a good faith salary range to applicants.
Initially, this law was set to go into effect in April of this year. However, the city council faced pushback from businesses and local leaders that were concerned that this would harm their ability to hire. Likewise, details were scant as we moved through the first quarter, making the law difficult to understand as it related to remote positions, commission-based work, or the nexus between the employer and the employee’s location.
A revision bill was introduced to clarify and modify some of the key components of the law. At the end of April this bill was approved, and the new enforcement date will begin on November 1, 2022. While not all of the details have been released, there are fundamental changes to note.
- The law applies to employees who are paid hourly or have a set annual salary
- It does not apply to positions that can not or will not be performed in NYC
- Only an individual currently employed with an employer will be able to bring a lawsuit against them for advertising a job without the hourly wage or salary range
- The first violation of the law is a $0 penalty for the employer and includes a 30-day period to rectify the posting and correct the violation
- The new enforcement date will start November 1, 2022.
As more workers are remote-first or in a hybrid environment, this bill clarifies that if the work is or will be performed in NYC, then the salary ranges must be present on the job description.
One of the core concerns for many organizations was that current employees would see what is being offered to candidates in similar positions. Now, employers can choose to create remote positions without having to disclose the range, or they will disclose it, knowing that current employees may come back requesting additional compensation.
More details will emerge over the summer that should address penalties, record keeping, and the definition of good faith.