After some amendments, NYC’s salary transparency law takes effect on November 1, 2022. The law applies to employers with four or more employees and requires employers to include a minimum and maximum salary/wage range in all job advertisements. Any advertisement that is in print, digital, or disseminated internally for transfer opportunities or promotion is subject to this new legal requirement.
Below are current answers to some FAQs about this new requirement:
Which employers does the law apply to? If an employer has at least four employees (which includes any owners and independent contractors), at least one of which works in NYC, then the law applies to that employer. All employees do not need to work in the same location and do not need to work in NYC.
Does the law apply to remote work? If the advertised position can be performed in whole or part in NYC, regardless of where the applicant is located and regardless of where the employee ultimately performs the work, the law applies. The requirements do not apply to jobs that cannot or will not be performed, at least in part, in NYC.
What information must be included in the job advertisement?
- Covered employers must state the minimum and maximum salary or hourly wage they are willing to pay for the advertised job. They must, in “good faith” believe, at the time of the posting that they are able and willing to pay within that range.
- Covered employers must post a compensation range with BOTH a minimum and maximum amount specified. It cannot be open-ended. If an employer has no flexibility in compensation for the job listed, then posting a fixed rate is acceptable (e.g., $18 per hour or $60,000 per year).
- Note that the salary/compensation only includes the base wage or rate of pay, not any other forms of compensation or benefits that might be offered (e.g., insurance, vacation or sick days, retirement plans, bonuses, tips, commission, etc.). An employer may include the additional compensation and benefits, but the new law does not require it to.
Does the new law require employers to post job advertisements? No. The law does not prohibit employers from hiring without using an advertisement nor does it require employers to create an advertisement in order to hire.
Where can I learn more? The NYC Commission on Human Rights has issued a detailed fact sheet with current guidance on the new law. It’s available here.