Are you ready? NYC Salary Transparency Law takes effect November 1
As we previously wrote here and here, New York City recently passed a law requiring employers to include the minimum and maximum salary, or wage range, in job postings. The law goes into effect on November 1.
As a reminder, NYC employers with 4 or more employees must include salary information in advertisements and job postings. The law applies to any work that is performed or could be performed (including remote work!) within City limits. The salary disclosure requirement applies to job postings, promotions, and internal transfer opportunities.
As the effective date looms, employers should do the following:
- Review the salary ranges of current employees in order to determine an accurate compensation range for all positions before publishing job advertisements.
- Review exiting job posting templates or create new templates for postings, including internal postings for promotion or transfer opportunities.
- Evaluate salary ranges, with a thorough documentation of the evaluation process, in order to meet the “good-faith” requirement of the law to prepare for possible complaints and investigations.
- Conduct a pay equity audit to find and address any pay disparities that may violate the Equal Pay Act, Title VII of the Civil Rights Act, or the New York State Equal Pay Law, among others.
- Train Human Resources personnel, talent acquisition specialists, and hiring managers on the salary disclosure requirements. The training should focus on setting salaries in a non-discriminatory manner – for example, by using quantitative and qualitative metrics.
- If the employer works with job recruitment agencies, confirm that the agencies are in compliance with the law, as salary ranges must be included in any job postings or related communications to candidates. As a reminder, temporary help agencies are not covered under the law.
Employers operating outside of New York City but within the State of New York should also be aware of the New York State Salary Transparency Law. The law awaits Gov. Hochul’s signature or veto, but employers should expect New York State to implement the salary transparency law at some point next year.
We will keep you updated on the status of New York City and State’s salary transparency laws. Please contact your local Constangy attorney with any questions as this trend sweeps the nation.
