New York City to Require Salary Transparency in Job Postings

On January 15, 2022, the New York City Council enacted an amendment to the New York City Human Rights Law—already one of, if not the, most expansive anti-discrimination statutes nationwide—which will require employers to list salary information in job postings.  The new law is part of an effort to address pay inequity through transparency.  

The City’s new salary transparency law will go into effect in May 2022 and applies to public and private sector employers with four or more employees.  Consistent with other recent amendments to employment laws at the New York State and City levels, the amendment defines “employees” to include full and part-time employees, permanent and temporary employees, interns, independent contractors, and employees who are family members of the employer.  Crucially, this means that New York City employers may not withhold salary information by classifying the posting as for an independent contractor role.  Further, the law applies not only to job postings for external hires, but also to internal promotion and transfer opportunities.  

Of course, employers cannot always guarantee an accurate salary range and may in some cases increase the offered salary in order to obtain their preferred candidate’s acceptance.  Accordingly, the new law requires only that employers post what they believe, in good faith, to be the minimum and maximum salary for the position at the time of the posting.  

Employers who fail to include the minimum and maximum salary offered for any position located within New York City may be subject to penalties including damages, attorneys’ fees, and fines.  Moreover, by making the withholding of salary information an “unlawful discriminatory practice” under Section 8-107 of the New York City Human Rights Law, the New York City Council has created a private right of action for prospective hires, as well as candidates for promotion or transfer, aggrieved by violations of the new salary law.

In the coming months, the New York City Commission on Human Rights intends to issue rules and guidance regarding the new law, and a similar bill is currently before the New York Senate.  Moreover, other states, including Colorado, Maryland, Washington, Connecticut, and Nevada, have passed comparable pay transparency laws.

Obfuscation of pay rates by employers (and perpetuation of this practice by employees, who are often hesitant to disclose their pay to co-workers) is one of many reasons that pay inequity has persisted—especially for women—despite efforts to level the playing field.  While complete pay equity will not suddenly manifest in May 2022 when this amendment goes into effect, this move toward greater, legally-mandated transparency represents a significant step in the right direction.