Written By: Francine Alfandary and Austin Ochoa
The New York City pay transparency law will go into effect on November 1, 2022.
As we discussed in our previous publication, the New York City pay transparency law applies to all employers with four or more employees in New York State (at least one of whom is in NYC), or employers with at least one domestic employee in New York City.
Covered employers are required to include the minimum and maximum salary range in all advertisements for jobs, promotions, and transfers. The salary range must be that which the employer believes in good faith, at the time of the posting, it would pay.[1] “Salary” means only the base salary. The job advertisement need not mention incentive compensation, commission pay, paid time off, stock options, or other forms of compensation.
Covered employers should comply with the pay transparency law when advertising for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.
The new law also applies to to employers who have 1 or more domestic workers in New York City.
Employers who breach the pay transparency law will have 30 days to correct violations before being fined by the New York City Commission on Human Rights (NYCCHR). The civil penalties may go as high as $125,000 or, in extreme cases, $250,000.
Positions that cannot or will not be performed, at least in part, in New York City are not covered by the NYC law. However, other cities and states across the US are enacting similar pay transparency laws.
For any questions or assistance, please contact Francine Alfandary at falfandary@pearlcohen.com.
