What Amendments to Wage Transparency Law Represent for NYC Employers

What Amendments to Wage Transparency Law Represent for NYC Employers

On May 12, 2022, Mayor Eric Adams signed an amended version of the New York City Pay Transparency Law, which was slated to take effect on May 15, 2022. The new effective date is now November 1, 2022, which gives employers significantly more time to comply. Several of the amendments also alter employers’ obligations under the new law.

NYC Pay Transparency Law

Several states, including California, Maryland, and Rhode Island, require employers to provide salary range information, either upon the applicant’s request or after a certain triggering event, i.e., an interview or employment offer. However, only Colorado joins New York City in requiring pay scales to be disclosed in job postings.

The New York City Pay Transparency Law makes it an unlawful discriminatory practice under the New York City Human Rights Law (NYCHRL) to not include in job listings the minimum and maximum salary offered for any position located within New York City. The range for the listed maximum and minimum salary must extend from the lowest salary to the highest salary that the employer in good faith believes it would pay for the advertised job, promotion, or transfer.

The requirement applies to any employer that has had four or more persons “in its employ” in the previous year.  For purposes of determining coverage, employers must count full-time, part-time, permanent and temporary employees, interns, and independent contractors. The four employees do not need to work at the same location, and they do not need to all work in New York City. As long as one of the employees works in New York City, the workplace is covered.

Employment Agencies are also covered by the new law, regardless of their size.

Temporary staffing firms, which are defined as businesses that recruit, hire, and assign their own employees to perform work or services for other organizations, to support or supplement the other organization’s workforce, or to provide assistance in special work situations, are exempt from the new law as they already provide the required information after interviews in compliance with New York State Wage Theft Prevention Act.

Recent Amendments to NYC Pay Transparency Law

The amended version of the New York City Pay Transparency Law, Int. 134-A., includes several changes that benefit employers. Below is a brief summary:

• Applicability: The amendments clarify that the law applies to employees who are paid hourly or through an annual salary. They further provide that the law does not apply to positions that can’t or will not be performed in New York City.
• Private Right of Action: Under the amendments, a person can’t bring a lawsuit against an employer based on the law unless that individual is a current employee who is bringing an action against their employer for advertising a job, promotion or transfer without posting a minimum and maximum hourly wage or annual salary. Accordingly, job applicants no longer have a private right of action.
• Penalties: Int. 134-A provides that New York City Commission on Human Rights will not assess a civil penalty for a first complaint alleging a violation of the salary transparency provision, provided that the employer shows they have remedied the violation within 30 days of receiving the Commission’s notice of the violation.

What’s Next?

As amended, the new wage transparency law will take effect on November 1, 2022. The New York City Commission on Human Rights is expected to provide additional guidance regarding compliance in the coming months. It has already updated its Fact Sheet to reflect the amendments.

Even though the effective date has been extended, we encourage NYC employers to begin preparing for compliance by determining the applicable salary ranges for upcoming job listings. Employers should also determine what changes may be needed to bring external and internal posting forms and other human resource templates into compliance. As with any employment law change, employers should also train managers and human resources personnel regarding the new requirements.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Michael Sheppeard, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.