Employers must include minimum and maximum potential salaries in all job advertisements and postings for New York City positions effective May 15, 2022.
On January 15, 2022, New York City adopted a law requiring employers (and their agents) to include the “minimum and maximum salary” for a position in any advertisements for a job, promotion, or transfer opportunity. The New York City Council initially passed these requirements on December 15, 2021, and the bill became law when New York City Mayor Eric Adams did not sign or veto it.
Effective May 15, 2022, it will be unlawful for an employer with four or more employees (including independent contractors) to advertise a job, promotion, or transfer opportunity without stating the minimum and maximum salaries for the position in the advertisement. In determining the minimum and maximum salary for a position, an employer must make a “good faith” determination at the time of the job posting of the lowest and highest salary it would pay for that position. Notably, the law does not define “salary,” or how “salary” must be expressed in job postings. The law also does not set forth a geographic scope for coverage, including if (or how) it will apply to remote workers. An earlier iteration of the bill was limited to “employment within the city of New York,” but subsequent amendments removed that limitation.
As the new law amends the New York City Human Rights Law (NYCHRL), failure to include minimum and maximum salaries in an advertisement for a covered position will constitute an unlawful discriminatory practice under the NYCHRL.
The law requires rulemaking by the New York City Commission on Human Rights before it can take effect. These forthcoming regulations and guidance will hopefully answer some important questions, such as the definition of “salary,” how to calculate “salary” for workers not paid on a salary basis or those who receive additional compensation in addition to a base salary, as well as the geographic scope of the law.
In passing this law, New York City follows a growing trend among states that have passed similar pay transparency laws. For example, in recent years, California, Colorado, Connecticut, Maryland, Nevada, Rhode Island (effective January 2023), and Washington, in addition to multiple local jurisdictions, have adopted laws that require sharing salary information, either through a public posting or upon request from an applicant or employee.
In addition, employers should monitor for developments from New York State. Currently, the New York State Senate and Assembly have introduced legislation (S5598B/A6529A) which would require all New York employers to disclose a salary range “upon issuing an employment opportunity for internal or public viewing or upon employee request.”
Employers should consider taking steps now to comply with the new law, including the following:
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
New York
Leni D. Battaglia
Ashley J. Hale
Melissa D. Hill
Daniel A. Kadish
Douglas T. Schwarz
Philadelphia
A. Klair Fitzpatrick
W. John Lee