You are currently viewing New York City Pay Transparency Law Receives Clarification and Further Amendment |  Hinshaw & Culbertson – Employment Law Monitor

New York City Pay Transparency Law Receives Clarification and Further Amendment | Hinshaw & Culbertson – Employment Law Monitor

The pending Salary Transparency Act (the Act) – which requires New York City employers to disclose the minimum and maximum salary when posting an advertisement for a job, promotion or transfer opportunity – was clarified by the New York City Commission on Human Rights and subsequently amended by the New York City Council.

NYC Human Rights Commission Provides Clarifications on Definitions

On March 22, 2022, the New York City Commission on Human Rights released guidance on the law which states that the law applies to employers with four or more employees or one or more domestic workers, with at least least one of these employees working in New York. . The guidelines state that an individual employer counts towards the four-employee threshold, as do all employees, regardless of where they work. The law extends to many types of workers, including “full-time or part-time employees, interns, domestic workers, independent contractors, or any other class of workers protected by NYCHRL.”

An “advertisement” under the law is defined as a “written description of an available job, promotion or transfer opportunity that is posted to a group of potential applicants. Such advertisements are covered regardless of regardless of the medium in which they are distributed. Lists covered include postings on internal bulletin boards, Internet advertisements, printed flyers distributed at job fairs, and newspaper advertisements.” The guidelines state that the law applies to positions “that can or will be filled, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.” does not prohibit employers from hiring without using an advertisement nor does it require employers to create an advertisement in order to hire.

Under the law, the term “salary” includes the base salary or rate of pay, regardless of frequency of payment, that the employer believes in good faith to be willing to pay for the position. Employers must state the minimum and maximum salary for the position, and the range provided cannot be unlimited. For example, “$15 per hour or more” or “maximum of $50,000 per year” do not comply with the law. If an employer does not have flexibility in the wage they offer, the minimum and maximum wage may be the same (i.e. $20 per hour or $70,000 per year). The term “salary” does not include other forms of compensation or benefits offered with an offer of employment, such as insurance, paid or unpaid time off, retirement or savings funds, departure, overtime, other forms of remuneration such as commissions, tips. , bonuses, shares or the value of meals or lodging provided by the employer.

The Human Rights Commission will accept and investigate complaints from employees who are victims of a violation of this Act. The Bureau of Law Enforcement can also launch its own investigation based on testing or advice. Employers who violate this law may be subject to monetary damages to affected employees and civil penalties of up to $250,000. Employers may also be required to modify advertisements and postings, create or update policies, conduct training, provide notice of rights to employees or applicants, and engage in other forms of positive measures.

New York Council Amendment to the Pay Transparency Act

On April 28, 2022, the New York City Council approved a bill to amend the pending Pay Transparency Act. The amended bill postpones the effective date of the Salary Transparency Act from May 14, 2022 to November 1, 2022. The amended bill also changed the term “salary” in the law to read “salary annual or hourly wage”. The purpose of this amendment is to clarify that hourly and salaried jobs are covered by the law. The amended bill clarifies that the Pay Transparency Act does not apply to jobs that “cannot or will not be performed, at least in part, in New York City.” In other words, if a job can be done entirely remotely from any location, employers would not be required by law to provide pay scales in the advertisement.

In addition, the amended bill limits a cause of action to claims by employees against their current employer for violation of the law regarding an advertisement for a job, promotion, or transfer opportunity with that employer. Finally, the amended bill does not impose a financial penalty on an employer who has violated the law for the first time, if he is able to prove, within 30 days of the service of the complaint, that he the breach has been remedied.

Leave a Reply