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NYC Amends Upcoming Salary Transparency Law and Releases Key Guidance

  • 7 mths ago

Q: I heard that New York City recently amended the salary transparency law. What are the key aspects of the amendment and when does it go into effect?

A: As discussed in our previous post, an upcoming law requires New York City employers to include salary bands in job advertisements or postings. Employers must include the minimum and maximum salary or hourly rate for the position, and the requirement applies to both internal and external postings.

On April 28, the New York City Council voted to make key amendments to the upcoming salary transparency law. The most important changes include:

  • Delaying the effective date to November 1 (the original date was May 15);
  • Excluding employers with less than 15 employees (the original law covered employers with four or more employees);
  • Excluding positions that “cannot or will not be performed, at least in part” in New York City; and
  • Providing that only current employees can bring a cause of action against their current employers regarding an advertisement for a job, promotion, or transfer opportunity (so third-party applicants cannot bring a claim).

The amendments left open the question of whether the law applies to remote positions that can be, but are not required to be, performed in New York City.

The New York City Commission on Human Rights also released guidance on the new law, which addressed many outstanding questions, including:

  • Employers Covered: Employees are counted regardless of geographic location. For example, if five employees work in New York City and 10 employees work elsewhere, the employer is covered for purposes of the salary transparency law.
  • Types of Postings Covered: The law applies to all “written descriptions of an available job, promotion, or transfer opportunity publicized to a pool of potential applicants.” It applies to both internal and external opportunities, regardless of the posting medium (internal intranets, newspaper advertisements, online postings, etc.). It also applies to numerous types of worker relationships, including internships and independent contractors.
  • Information Provided: The posting must include the minimum and maximum salary or hourly rate that employers believe in good faith they are willing to pay for the advertised position. The range cannot be open ended (for example, “$15/hour and up) — it must include both a minimum and maximum. If the employer has no flexibility, the minimum and maximum may be the same (for example, “$20 per hour). Salary includes the base wage or rate of pay, but does not include other forms of compensation or benefits, such as paid time off, commission, and bonuses.

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