Why Every Employer Including Those Outside NYC Should Stay Abreast of the NYC Pay Transparency Law

In January 2022, the New York City Council amended the New York City Human Rights Law (NYCHRL) to require employers advertising in New York City to include a good faith salary range for every job, promotion, and transfer opportunity advertised. Advertisement is defined as a written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants, including, but not limited to, posting on internal bulletin boards, internet advertisements, printed flyers distributed at job fairs, and newspaper advertisements.  

The NYCHRL, which went into effect on November 1, 2022 covers employers with four or more employees or one or more domestic workers. These four employees do not need to work in 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 employer is covered by the law. Furthermore, covered employers are required to comply when the advertised position can or will be performed at least partly in New York City, whether such work is performed in office, in the field, or remotely.

The law also covers employment agencies, regardless of their size. Thus, agencies advertising in New York City must ensure that the job listings they promote or are trying to fill comply with the new pay transparency requirements. Temporary agencies seeking to fill an applicant pool are excluded from the pay transparency requirements.  

Why should employers outside New York City be attentive to this new law? Employers must stay abreast of this law because it shapes job advertisement nationally. Job search engines play a significant role in the labor market as employers rely on them to advertise and fill open positions. Most job search engines and employment agencies advertise nationally to increase the likelihood of landing the strongest candidates. Under this law, an advertisement that reaches New York City must comply with the new requirement to include a salary range. Additionally, many employers now have at least a portion of their workforce working remotely. If at least one of their employees performs work in NYC, these employers may be covered by the new NYC law. Thus, employers with a remote workforce must be vigilant to ensure they do not inadvertently violate this new law.

Turning a blind eye to the pay transparency requirements can be costly. This law carries a hefty penalty in case of violation, with a fine of up to $250,000 per violation.

Pay transparency laws have gained momentum across the country, and have been enacted in California, Colorado and Washington State. Similar legislation for New York State is pending. Some cities and counties have also enacted these laws, including Westchester County and Ithaca, N.Y, and New Jersey City, NJ.

Covered employers should take steps to ensure compliance with this new law. For more information, please contact the KMK Law Labor & Employment Law team.

KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.


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