In an effort to combat gender and racial wage gaps, both New York City and Westchester have passed similar pay transparency laws, becoming effective in November. Employers should become familiar with the laws’ requirements and stay tuned for a possible state-wide law to follow.
New York City
New York City’s pay transparency law becomes effective November 1, 2022, requiring covered employers to include a good faith salary range for every job, promotion and transfer opportunity advertised.
The law applies to all employers with four or more employees or one or more domestic worker, as long as just one of those employees works in New York City.
An advertisement is a written description of an available position that is publicized to a pool of potential applicants, including postings on bulletin boards, internet sites, flyers and newspapers. The advertisement must state the minimum and maximum salary that the employer, in good faith, believes it is willing to pay for the position, as of the time of posting. Salary ranges are required for both hourly and salary positions.
The salary range requirement does not apply to positions “that cannot or will not be performed, at least in part, in the City of New York.” According to the New York City Commission on Human Rights, employers “should follow the new law when advertising for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.”
Westchester’s similar pay transparency law will become effective on November 6, 2022. The County law requires employers with at least four employees to include a minimum and maximum salary for each posted position. The law specifically applies to positions that are required to be performed, in whole or in part, in Westchester County.
Westchester’s law includes preemption language, stating that it will become null and void if a state law goes into effect that incorporates the same or substantially similar provisions.
New York State
A pay transparency law has already passed the New York legislature. If signed by the Governor, the law will require employers to post both a salary range and a position description for any job that can or will be performed in the state. Stay tuned.