New York City Salary Transparency Law

New York City employers need to disclose salary ranges for each job posting in the job advertisements. On January 15, 2022, New York City enacted a new law amending Section 8-107 of the New York City Administrative Code. Moreover, it will be an “unlawful discriminatory practice” if an employer fails to advertise a job, promotion, or transfer opportunity without stating the position’s minimum and maximum salary in the advertisement. However, the bill is now postponed until November. But, delay that shouldn’t thwart its ultimate implementation. New York City is catching up with Colorado. A similar law is in place in Colorado since last year. Moreover, the purpose of postponing the implementation of law is to provide more time to employers for preparations.

Purpose of salary transparency law

This law aims to promote greater salary transparency in the hiring process. Moreover, the law will help in combating the gender pay gap and other potential discrimination. Both chambers of the New York state legislature have also postponed the implementation of similar bills. Additionally, several other states around the country have adopted similar laws as well.

Application of law

This law will be applicable to employers (and their agents) with four or more employees.  Independent contractors working in domain of the employer’s business enterprise will also be the part of headcount. However, the law does not apply to job advertisements for temporary employees. Furthermore, remote workers will not fall under the domain of this law. Hence, it will exempt the workers who are soliciting the employers from outside the New York City.

Uncertainties around the new law

Although the salary transparency bill tends to eliminate discriminatory practices. There are uncertainties looming around it. Firstly, it is unclear whether salary ranges should include discretionary bonus amounts. Secondly, it is also unclear if the law applies to employees who live outside of New York City but work for employers based in the city and vice versa. The press secretary for the New York City Commission on Human Rights will provide more information regarding compliance with the law in May.

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