CLIENT ALERT - Update on the New York City Salary Transparency Law

Starting today, November 1, 2022, employers advertising jobs in New York City must include a good faith salary range for every job, promotion, and transfer opportunity advertised. This new law, which is aimed at eliminating discrimination in compensation, amends Sections 8-102 and 8-107 of Title 8 of the New York City Administrative Code (titled “Civil Rights”).

All employers that have four or more employees, or one or more domestic workers, are covered by this new law. Employment agencies, too, are covered by this new law, regardless of their size. This new law does not apply to advertisements for temporary employment at temporary help firms, which are already required to provide compensation ranges under New York State law.

This new law will apply to employers advertising for both salaried and hourly positions and for both full-time and part-time positions, but it will not apply to employers advertising positions that cannot be performed, or will not be performed, at least in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.

Under this new law, only a current employee may bring suit against his/her employer for failing to advertise a job, promotion, or transfer without posting a minimum and maximum hourly wage or annual salary, but the New York City Commission on Human Rights accepts and investigates complaints from any member of the public.

A first-time violation will not result in a civil penalty if the employer can demonstrate that the violation has been cured. An uncured first-time violation and any subsequent violations may result in a civil penalty of up to $250,000. Employers in violation of this new law may also have to pay monetary damages to affected employees, amend advertisements and postings, create or update policies, conduct training, provide notices of rights to employees or applicants, and engage in other forms of affirmative relief.

How exactly advertising for remote or hybrid work opportunities will be viewed under this new law is one of a number of potential issues for employers. So, too, is the potential for increased exposure to discrimination claims.

New York State lawmakers have passed a bill that would require private-sector employers throughout New York State to include salary ranges in their job advertisements as well. The bill has not yet been signed into law.