New York City’s Pay Transparency Law
What Companies Need to Know to Avoid Civil Penalties
In its mission to assist businesses comply with multiple laws, regulations and guidelines, Cea Legal analyzed the requirements of the recently enacted New York City’s pay transparency law. The new law makes it illegal for a NYC-based company – with at least four employees or independent contractors - to advertise a job opening without including information regarding the minimum and the maximum salary for the position.
Specifically, the details to be disclosed include the salary range that the employer “in good faith” believes it will pay for the job to the successful applicant, as of the time of the opening for a specific position. The pay range, which can be expressed as an annual base or an hourly wage, cannot be open ended, while if the employer has no flexibility, minimum and maximum will be the same. Non salary compensation and benefits, namely paid time off, overtime pay, severance pay, health coverage, commissions and bonuses, are not required to be disclosed and included in the determination of the salary in New York City
Do You Have Some Wiggle Room in the NYC Salary Law?
Companies should be ready to justify their “good faith” determination, but the new law does not prohibit employers from subsequently paying an amount different from the range posted, provided, however, the reasons from such departure need to be explained.
Violators can be liable for civil penalties up to $250,000 imposed by the NYC Commission on Human Rights (CHR), which will accept complaints filed by members of the public, as well as for monetary damages as a consequence of a private action initiated by an employee.
Interestingly, the NYC City Pay Law also applies to companies that do not have physical operations in New York City if the position advertised could be performed by a remote worker living in New York City.
CONTACT OUR OFFICE TODAY: