New York City Amends Wage Transparency Law to Provide Clarity to Employers

The new effective date to include minimum and maximum salary and wage information in job advertisements is November 1, 2022

As noted in our previous blog, employers with at least four employees and all employment agencies are required to include the minimum and maximum annual salary or hourly wage in all job advertisements for all covered job, promotion, or transfer opportunities by May 15, 2022.

However, on April 28, 2022, the New York City Council amended the City’s salary disclosure law [Local Law 32 of 2022] to clarify that the law applies to employees working in the City who are paid hourly or through an annual salary. Positions that cannot be performed or will not be performed, at least in part, in New York City are exempt from the job advertisement requirement.

Important changes

1. A person can only bring a lawsuit against an employer if they are a current employee. This precludes prospective employees or applicants from bringing forth claims.
2. There is no financial penalty for the initial complaint of non-compliance and employers will have 30 days to correct the violation.
3. Either annual salary or hourly wage information must be disclosed in the job advertisement.
4. The bill moves the effective date of the law until November 1, 2022.

OutSolve's Take

Employers should be happy that the compliance liability is limited to employees and not all applicants viewing job postings. Keep in mind that the New York City pay transparency law does not require an employer to use advertisements to publicize job openings; however, government contractors are required to list their job openings with the New York employment service delivery system within three days of the job opening, if the position is below the executive level. The OFCCP has provided a Postings & Notice Requirements tool to assist contractors with their compliance requirements.

Clients who are interested in taking preventive measures to evaluate their pay practices can reach out to their consultant or contact us at info@outsolve.com or by calling 888-414-2410. More information about our Pay Equity Analysis Services can be found on our website.