Understanding New York City’s Salary Transparency Law

When you’re looking for a new job, the pay is likely what you’re most concerned about. However, employers are not always open about what a position’s salary is. This can lead to you applying for jobs, interviewing, and doing various tests just to find out it pays far below what you believe you deserve. Many people may also accept positions that pay far below what they are actually worth if employers aren’t open about compensation. This can result in marginalized groups being paid less than others and widening the pay gap. However, this will no longer be the case for employees in New York City. Beginning on November 1, 2022, New York City’s Salary Transparency Law will go into effect.

The Salary Transparency Law will make New York City one of the few places in the United States that requires pay transparency. What exactly does this law cover and what will it do for employees? Learn more about this upcoming law and when it is applicable.

What is NYC’s Salary Transparency Law?

When this new law goes into effect, it will be considered an “unlawful discriminatory practice” under the New York City Human Rights Law (NYCHRL) if an employer does not provide the minimum and maximum salary or hourly range for a position. This doesn’t only apply to job postings, but also to promotions and transfers. The compensation range the employer provides must be what they, in good faith, believe they would pay at the time of posting the information. Thanks to this law, more employees will understand what a position pays, which can help prevent them from being taken advantage of and receiving less than they deserve.

However, not all employers are covered by this law. The wage transparency law only applies to employers with four or more employees, including contractors. It also does not include temporary staffing agencies posting opportunities for temporary positions. The wage transparency law is not applicable to jobs that can’t or won’t be performed, at least in part, in New York City.

While this law was initially intended to go into effect on May 15, 2022, it has recently been pushed back to later in the year and will begin on November 1.

Penalties for Not Following the Salary Transparency Law

Only current employees can bring an action against their employer for violating their law. Job applicants do not currently have the right to take action against prospective employers under this law. Employers will also have 30 days to correct their violation of the law for their first violation. After the first violation, employers could be required to pay up to $250,000 in civil penalties. This is the maximum penalty under the NYCHRL.

New York City Employee Rights Lawyers Who Can Help

Tens of thousands of employees experience employment discrimination each year, many of whom may be paid less than they deserve due to their membership in a protected class. At Bantle & Levy, we’re committed to helping employees stand up to employment discrimination and get the justice they deserve. If you’ve been discriminated against in any aspect of employment, contact our employment lawyers to find out how we can help.

Bantle & Levy

Lee Bantle is a partner at Bantle & Levy LLP. He has extensive legal expertise, admitted to the bars of the U.S. District Court and the U.S. Court of Appeals. With a distinguished academic background and clerkship experience, he has been recognized as a top-rated civil rights attorney and esteemed lawyer. In addition to his successful career, he has actively contributed to various legal organizations and serves as a faculty member for NYU's Annual Workshop on Employment Law for Federal Judges.

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