New York City’s Pay Transparency Law Goes into Effect

Beginning Tuesday, November 1, New York City requires most private employers to post good faith salary ranges in any advertisement for a job, promotion or transfer opportunity that can or will be performed at least partially in the city. In doing so, New York joins other states and cities, including Colorado, California, Connecticut, and Maryland, which mandate some form of pay transparency during the hiring process.

Here are the pertinent details you should be aware of:

• All employers that have four or more employees, or one or more domestic workers are covered by this law. When calculating this number, it’s important to note that business owners and individual employers count towards the four employees.

• Your employees do not need to work in the same location, and they do not need to all work in New York City. If only one of your employees works in New York City, your business must comply with the law.

• Employers must include both a minimum and a maximum salary; the range you provide cannot be open ended. For example, a range of $110,000 - $140,000, or $15 -$20 an hour would comply, but $110,000 and up, or $15 and and up would not.

• This law applies to postings for remote positions that can be performed wherever an employee resides, even if the employee does not reside in New York City.

• This posted salary range should not include other forms of compensation and benefits that come with the position.

• This law applies to all public job postings, including online posts (LinkedIn, Monster, Indeed, etc.), internal bulletin boards, and magazine advertisements.

The New York City Commission on Human Rights is in charge of investigating complaints about businesses that violate the law. Employers that receive a complaint can avoid a civil penalty by curing the violation within 30 days. If the violation goes uncured, employers could be assessed civil penalties of up to $250,000, as well as for any subsequent violations.