New York City Clarifies Pay Transparency Timetable—Delays Effective Date

Mara B. Levin, Stephen E. Tisman, Anthony A. Mingione, and William J. Anthony

As previewed in our April 5, 2022, client alert (New York Employers, Take Note! Two New Laws Effective in May | Blank Rome LLP), New York City has rolled back to November 1, 2022, the effective date of its amendment to the New York City Human Rights Law (“NYCHRL”) that will require the City’s private employers to provide a minimum and maximum salary range for jobs when advertising employment opportunities.

The City delayed the effective date in order to give employers a six-month extension of time to come into compliance. The amendment will require employers that are advertising job openings for positions performed in New York City to include the salary range (both a minimum and maximum amount) being offered for the position in the advertisement.

The term “advertisement” is broad, and will include traditional job postings, as well as internal company descriptions, social media postings, and other solicitations. The law will apply to any job that could be performed in whole or in part in New York City, including full- and part-time positions, remote jobs, domestic work, internships, independent contractors, and any other position that would be covered by the NYCHRL.

Failing to comply with the law will constitute an unlawful discriminatory practice under the NYCHRL. Employers will have 30 days to correct first-time violations without incurring a monetary penalty. After that, employers may face fines of up to $250,000 for willful violations. The law also contains a private right of action for current employees that will permit the recovery of compensatory and punitive damages, as well as attorneys’ fees and costs.

We recommend that New York City employers use this six-month respite to “stress test” their compensation models to ensure that facially neutral programs are not resulting in disparate impact on any class or category of their workforce. Employers should also use this opportunity to make sure the factors of compensation are clearly communicated and understood. Remember, once effective, the law will require communications that will inform all employees about salary ranges for posted jobs, which could trigger employee-relations issues if not well planned and implemented.

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