New York City Amends and Delays Salary Range Transparency Law
New York City’s job advertisement “salary range transparency law,” which was set to take effect on May 15, 2022, has been amended by the City Council. Among other changes, the amendments delay the effective date to November 1, 2022, which will provide employers and regulators more time to implement the law.
We previously wrote about the challenges presented by and ambiguities within the law in a published note. Moreover, prior to the amendments, the New York City Commission on Human Rights issued compliance guidance.
The amendments largely keep intact the general requirements of the law, but, in addition to delaying the effective date of the legislation, make the following key clarifications and changes:
- In order to address employees who would not be paid on a salary basis, the law now explicitly covers an anticipated “hourly wage,” which is consistent with the City Commission’s previous guidance that the law would broadly apply to an employee’s “base wage.”
- Job advertisements are now excluded from the law’s requirements to the extent the underlying position “cannot or will not be performed, at least in part, in the City of New York.” Although not entirely clear, this change appears to codify the City Council’s legislative intent that a job advertisement is not covered by this law solely because the employer has an office within the City. Positions for remote employees (including, for example, employees working from home) likely remain covered by the law if they will be physically working within the City.
- The amendments remove a private right of action for an employer’s alleged violation of the law, with the exception of existing employees who may still pursue claims relating to “an advertisement by their employer for a job, promotion or transfer opportunity with such employer.” In other words, job applicants who are not employees will not be able to commence an action based on an alleged violation.
- Finally, civil fines for a first violation have been reduced to zero, provided the employer cures any deficiency within 30 days of notice from the City Commission.
Assuming the Mayor signs (or does not veto) the City Council’s amendments, the law will now be effective November 1, 2022, which should allow employers time to prepare and seek advice with respect to implementation. Additionally, we anticipate further City Commission guidance prior to the new effective date, in part to address some of the remaining ambiguities in the law. Finally, we are monitoring an analogous proposed bill (e.g., pertaining to compensation transparency in job advertisements) at the New York State level.
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