U.S. - New York - New York City pay transparency law guide
Introduction
Effective Nov. 1, 2022, New York City's pay transparency law (Int 1208-2018) requires employers with four or more employees to provide a minimum and maximum salary range in all job postings.
The law also applies to internal promotions and transfer opportunities.
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New York City Pay Transparency Requirements
Under the law, New York City employers with four or more employees, and at least one who works in New York City, are obligated to disclose a minimum and maximum salary range in job advertisements. Other forms of compensation such as bonuses, tips, and paid time off are not required to be included. However, the employer is obligated to indicate if a role is commission-based.
Employers covered under the law that post a job, promotion, or transfer opportunity for a position that can or will be performed in New York City must include a "good faith" salary range in the posting.
The Risks of Non-Compliance
The New York City Commission on Human Rights (NYCCHR) - the enforcement agency - amped up its enforcement activity in 2024. Specifically, the NYCCHR has gone after organizations that have provided overly large salary ranges, which are deemed not in good faith.
Failure to comply with the law specifics could result in a civil penalty of up to $250,000 per violation. Employers covered under the law that post a job, promotion, or transfer opportunity for a position that can or will be performed in New York City must include a good faith salary range in the posting.
The penalty enforcement structure is as follows:
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A first-time violation does not incur monetary penalties if the employer can demonstrate that it rectified the alleged violation within 30 days of receiving a complaint.
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Subsequent violations can lead to civil penalties imposed by the NYCCHR of up to $250,000.
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Employees have a private right of action to initiate legal proceedings against their current employer for violations of this law.
The NYCCHR website publishes recent commission-initiated complaints of alleged unlawful discriminatory practices in violation of any provision of the NYCHRL. As of Jan. 24, 2024 (latest update), the webpage lists 33 complaints, half of which remain open and all but one of which concern alleged violations of Section 8-107(32).
How Can Trusaic Assist with New York City's Pay Transparency Law Requirements?
The goal of pay transparency laws is to promote practices that lead to a more equitable compensation environment. Similar to salary history ban laws, requiring pay ranges on job postings promotes fair pay practices and holds organizations accountable.
If implemented thoughtfully and strategically by an organization, pay transparency can promote a better work environment where employees believe they are paid fairly. Providing salary ranges on job postings can also positively narrow the applicant pool and improve the hiring experience.
Absent salary range information, a job candidate could go through a multi-week interview process only to discover the job offer is far below their salary expectation. This wastes the candidate's time and causes financial and reputational damage to the employer.
The task of moving toward full pay transparency can be daunting for an organization.
1. Comply - Use Trusaic's Salary Range Finder to ensure fair and competitive pay at the time of hire:
Salary Range Explainability: Salary Range Finder helps you establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.
2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:
Trusaic's pay equity software alleviates the concern of moving to full transparency by identifying the root cause of pay disparities and remedying them. Additionally, it supports the creation of equitable, compliant job postings and enables a consistent approach to pay range disclosure.
This empowers your organization to execute compensation plans with complete confidence that pay equity is at the center.
OpportunityParity™, a feature of Trusaic's workplace equity analysis software, offers a complete solution for pinpointing and remedying equity concerns in your organization's hiring, promotion, and retention processes.
Drawing from diverse global directives like the OFCCP, EEOC, EU Pay Transparency Directive, and more, it ensures fairness and inclusivity throughout your talent lifecycle, irrespective of geographical boundaries or regulatory frameworks.
How OpportunityParity Supports Your Goals:
- Improves equitable career advancement: Build equity into every aspect of your talent management process, from recruitment to retention.
- Analyzes and improves opportunity equity: Identify and address disparities in hiring, promotion, performance assessment, and retention.
- Helps you achieve workplace equity objectives: Use forecasts to help achieve your diversity objectives and accelerate progress with data-driven insights.
- Builds a culture of trust and transparency: Elevate human capital, bolster people sustainability, and fortify social responsibility metrics by fostering an environment of trust and transparency.
Leveraging Trusaic's workplace equity software suite will help ensure you remain in compliance with New York City's pay transparency law requirements.