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.
Contact us
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:
-
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.
-
Subsequent violations can lead to civil penalties imposed by the NYCCHR of up to $250,000.
-
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 unbiased 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® to understand, explain and resolve pay disparities:
Analyze: Trusaic’s pay equity analysis software analyzes compensation and benefits data directly from your HRIS system to uncover pay inequities across gender, race, age, and more. Conduct proactive or compliance-driven analyses to pinpoint disparities, reduce legal risk, and build trust by ensuring unbiased, transparent pay practices across your workforce.
Remediate: PayParity with R.O.S.A. (Remediation Optimization Spend Analysis) helps you remediate pay inequities with precision. R.O.S.A. runs hundreds of simulations quickly to find the most impactful pay adjustments, ensuring your budget is spent where it matters most. Make every adjustment count in your ongoing commitment to unbiased, transparent pay practices.
Prevent: Prevent future pay inequities by addressing systemic root causes and through the continuous monitoring of your pay practices. Use your pay equity analysis to guide salary decisions with tools like Salary Range Finder. Keep progress on track by embedding unbiased pay practices into hiring, promotions, and compensation adjustments.
Leverage Trusaic’s pay equity software solutions to ensure you remain in compliance with New York City's pay transparency law requirements.