Job posting

Enforcement of NYC Salary Transparency Law in Job Posting Likely Delayed Until November 2022 | Lowenstein Sandler LLP

Late last week, the New York City Council passed an amendment to the long-awaited New York City Salary Disclosure Act (whose original law we previously detailed here), which, in pending the signature of New York City Mayor Eric Adams is expected to delay the effective date from May 15, 2022 to November 1, 2022. The amendment also clarifies and changes other aspects of the law. Mayor Adams is expected to sign the amendment by May 15.

As previously planned, New York City will require, under the New York City Human Rights Law (“NYCHRL”), that employers with four or more employees include the minimum and maximum wage for a position in its job offers, including those for promotion and transfer possibilities. To determine the salary scale, the employer must indicate a range from the lowest salary to the highest salary that he estimates, in good faith at the time of the posting, that he would pay for the job, the promotion or transfer opportunity announced.

The amendments to the law clarify that the law does not apply to positions that cannot or will not be filled, at least in part, in New York City, and confirm that the law applies to both paid and schedule.

While small businesses had lobbied to be exempt from the law, these proposed changes failed, so the law still applies to businesses with four or more employees. However, in a victory for employers, under the amendment, job seekers no longer have a private right of action to sue potential employers under the law. Instead, only actual employees can sue their current employer for failing to provide required information in an advertisement for a job, promotion, or transfer opportunity.

The New York City Commission on Human Rights (“NYCCHR”) also retains law enforcement authority, although the amendment states that there are no civil penalties for a violation. first violation if an employer can prove to the satisfaction of NYCCHR that it has cured the alleged violation within 30 days. Financial penalties apply for any new violations.

Pay transparency laws continue to be the trend, with laws in Colorado and Connecticut already in effect, a similar law slated to take effect in Washington State starting January 1, 2023, and bills pending in California and other states nationwide.