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Does NYC’s new salary transparency law affect you?

On Behalf of | Mar 28, 2022 | Employee Benefits, Employment Law

A new law that will fall under the umbrella of the larger New York City Human Rights Law (NYCHRL) takes effect on May 15. It affects any employee with at least four employees (including themselves) as well as employment agencies. 

The law is intended to add salary transparency. It requires job listings to include a “good faith salary range for every job, promotion, and transfer opportunity advertised,” according to the NYC Commission on Human Rights.

It’s important to note that “advertisement,” doesn’t just mean a job listing on a website or in another public forum. It includes any “written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants,” even if it’s internal. 

It’s also important to note that the new law applies to jobs performed even in part in New York City, including those where an employee works at home or their responsibilities sometimes require them to go to locations in the city.

What information is required in the job advertisement?

Employers and agencies must provide the minimum and maximum amount they believe “in good faith” they’re willing to pay. If there’s no range, then they need to list the exact amount. The amount can be listed as the base hourly rate or annual salary. When multiple jobs are advertised together, the required information must be provided separately for each job.

This does not include overtime pay, commissions, bonuses or any benefits like insurance. However, that information can also be included.

Violations can be costly

Employers who are found to have violated any part of the NYCHRL, including this new law, can be required to pay as much as $250,000 in civil penalties as well as monetary damages to individuals found to have been harmed. In addition to changing their job listings, they may also be required to update their policies, conduct internal training and take other steps to help them comply with the law.

It’s wise for any business or individual employer who may be affected by the new law to be thoroughly familiar with it and make certain that anyone involved in personnel decisions is as well. If you have questions or concerns about it, it may help to seek legal guidance.