As previously shared, on November 1, 2022, employers advertising jobs in New York City must include a ‘good faith’ salary range for every job, promotion, and transfer opportunity advertised. Here’s everything you need to know.
Who is Required to Participate?
All employers that have four or more employees or one or more domestic workers are required to comply. Employers count toward the total. The four employees do not need to work in the same location, nor do they all have to work in New York City. The workplace is covered as long as one employee works in New York City.
Employment agencies, regardless of size, must ensure that any job listings they promote comply with the new salary transparency requirements.
Temporary firms are exempt from this law when seeking applicants to join their talent pool. However, employers who hire temporary help firms must follow the new salary transparency law.
What Jobs Are Covered by The New Law?
The new law covers any advertisement for a job, promotion, or transfer opportunity that would be performed in New York City. Covered listings include postings on internal bulletin boards, internet advertisements, social media postings, printed flyers distributed at job fairs, and newspaper advertisements.
All jobs in NYC are covered, whether from an office, in the field, or remotely from the employee’s home. Postings are covered regardless of whether they seek full- or part-time employees, interns, domestic workers, independent contractors, or any other category of worker protected by the NYCHRL.
What if I Don’t Advertise Open Positions?
The law does not prohibit employers from hiring without using an advertisement or requires employers to create an ad to hire.
How Does an Employer Determine the Pay Range to Include in the Posting?
Employers must state the minimum and maximum base salary they, in good faith, believe they are willing to pay for the advertised job, promotion, or transfer opportunity. "Good faith” means the salary range the employer honestly believes they are willing to pay the successful applicant(s).
Employers must include both a minimum and a maximum salary; the range cannot be open-ended. For example, “$15 per hour and up” or “maximum $50,000 per year” would not comply with the new requirements.
What if I Have No Flexibility in What I’m Willing to Offer?
If an employer has no flexibility in the salary they are offering, the minimum and maximum compensation may be identical, for example, “$22 per hour.”
How Will This Law be Enforced?
Employers or employment agencies who violate this law may have to
- Pay monetary damages to affected employees
- Amend advertisements and postings
- Create or update policies
- Conduct training
- Provide notices of rights to employees or applicants
- Engage in other forms of affirmative relief
The Commission will not assess a civil penalty for a first-time violation if the employer shows they have fixed the breach within 30 days of receiving notice. Covered employers may have to pay civil penalties of up to $250,000 for an unresolved first violation of the new law, as well as for any subsequent violations.
An HR Business Partner is available to have a conversation around implementing this new regulation and keeping your organization compliant. With penalties up to $250,000, the stakes are high; contact us with your questions concerning the new salary transparency law.