Pay Transparency in New York City

By Shira Gelfand

As we previously reported earlier this year, the New York City Council passed a law requiring New York City employers with more than four employees to publish the minimum and maximum pay range for any job by May 15, 2022. While this new law was an exciting development for job seekers, many questions remained as to its application and enforcement.

On April 28, 2022, the New York City Council postponed the implementation of the law until November 1, 2022 and provided certain amendments to clarify its provisions. While the law initially stated that it applied to job postings for full-time, part-time, permanent and temporary employees, interns, and independent contractors, the amendment clarified that both hourly and salaried workers would be included in this definition. Secondly, the earlier draft of the law provided that it did not cover postings for remote jobs that were not required to be performed in New York City. The amendments then reversed course, stating that the law does apply to remote positions that could be filled by a candidate residing in New York City. In terms of the enforcement of the law, the amendment clarified that only current employees – not prospective employees –  may bring an action against their employer for violations of the law. Finally, the amendment prevented any imposition of penalties for an employer’s first violation if it can be remedied within 30 days of the complaint.

The New York City Commission on Human Rights issued additional guidance on the new law and its application on May 12, 2022. The guidance clarifies which job listings are covered, what information must be included, and the process by which these protections will be enforced.

With only one month to go until the law comes into effect, advocates for pay equity are hopeful that the transparency will shed light on and eradicate discriminatory pay practices and lead to overall higher pay for all workers.