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May 2022: New York City Council Passes Amendment to Pay Transparency Law

17 May

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Update Applicable to:
All employers with four or more employees in New York City.

What happened?
In our previous communication, we informed you about the proposed amendment to the New York City Pay Transparency Law that was passed on December 15, 2021. This is an update to that law.

What are the details?
After the New York City Committee on Civil and Human Rights (Committee) hearing on April 5, 2022, it became clear that the Committee would not adopt the initially proposed amendment of the NYC pay transparency law, which requires that NYC employers with four or more employees include the salary range of the position in job postings. However, the Committee proposed a second amendment that was passed by the NYC Council on April 28, 2022.

The new amendment postpones the effective date to November 1, 2022, and also clarifies for employers that both hourly wage and salaried jobs are subject to the statute.

The amendment also eliminates the broad private right of action available under the original law. Under the revised version, only current employees may bring an action against their employer for non-compliance. Based on the change, applicants likely cannot file a private right of action for violations. However, the New York City Commission on Human Rights (CCHR) will still have the authority to enforce violations applicable to applicants.

Further, under the amended law, first-time violators will not be subject to any monetary penalties, so long as they correct the violation within 30 days, presumably by updating the relevant job advertisement.

However, the amended version incorporates guidance from the CCHR regarding the applicability of the law to remote job positions. Specifically, the amended law provides that the salary disclosure requirement does not apply to positions that “cannot” or “will not” be performed, at least in part, in New York City. Stated differently, if any part of an advertised job can theoretically be performed in New York City, then the salary range for the position must be disclosed in the advertisement.

For more information, please see the links below:

NYC Pay Transparency

Original NYC Salary Transparency Factsheet

Vensure Legal Update (4/5/2022)

Article 1Article 2

What do employers need to do?
Employers should review the links provided above and should take advantage of the extended time to adjust their job advertisement policies.

Need help understanding how changes to employment laws will affect your business?

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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