New York Pay Transparency Legislation Moves to November 2022 Start Date

A few weeks ago, Payscale released a blog about What Employers Need to Know About the Evolving Trend of Pay Transparency Legislation. We understand that many organizations are trying to wrap their arms around how to quickly adapt to this evolving landscape in a way that allows them to comply with legislation all with limited resources to respond quickly and a very competitive talent market. However, in many instances, staying up to date with the rapidly evolving landscape can be a challenge.  

Since hearing about the proposed amendments, the New York City pay transparency ordinance has been on my Google Alerts. Why?  NYC is one of the most highly competitive job markets in the country, so we know that what happens there may influence the rest of the country. This is the pay transparency legislation that a lot of employers have been nervous about due to the requirements it imposes on employers, especially small businesses.  

On April 28, 2022, the New York City Council voted by a vote of 43-8 to tweak its proposed pay transparency legislation, and now we finally have some answers. 

Here’s what you need to know: 

  • Who must comply: all employers with 4 or more employees in NYC (the Council rejected the amended proposal to increase the employer limit to 15 or more employees, something we originally thought may happen) 
  • When Do I Need to Comply: Implementation date is November 1, 2022 (instead of May 15, 2022) 
  • Are there penalties if I don’t comply: Employers get a warning and 30 days to fix their first violation before facing city fines which could be up to $250,000.  
  • Who can sue for noncompliance: Only employees can sue the employer for not listing salary ranges under the new law through the NYC Commission on Human Rights. This provision was added in an effort to provide relief to small business owners. 
  • What about remote work postings: Only positions that couldn’t or wouldn’t be performed in NYC at all would be exempt from the salary posting requirement. The Council rejected a carve out exception to exclude fully remote work from the ordinance. Ultimately, this means that employers across the United States, who have 4 or more employees in NYC, who advertise for general remote work are subject to this ordinance if the work can be performed in NYC. 

While Mayor Adams still needs to sign the NYC Pay Transparency ordinance, we expect him to do so in the coming days. In the meantime, we will continue to post updates to the blog as we get them.  

Are you interested in increasing the transparency of your pay practices? Learn more about the steps you can take to establish clear pay strategies and have effective pay conversations by making the commitment to talk about fair pay today