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October 2022: Reminder: New York City Pay Transparency Will Go Into Effect in November

03 Oct

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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 notified you that the NYC Pay Transparency Law passed on December 15, 2021, was postponed to November 1, 2022. This is a reminder for that update.

What are the details?
Effective November 1, 2022, the New York City Human Rights Law will require covered employers who post a job, promotion, or transfer opportunity for a position that can or will be performed, at least in part, in New York City to disclose the minimum and maximum annual salary or hourly wage that the employer in good faith believes it would pay for the position.

Covered employers include four or more employees (including independent contractors and owners), or one or more domestic workers, so long as at least one of the employees works in New York City. The law additionally covers employment agencies of all sizes. However, “job advertisement[s] for temporary employment at a temporary help firm,” such as a staffing agency, are exempted from disclosure requirements.

Guidance issued by the NYC Commission on Human Rights (the “Commission”) provides that the “salary” employers must disclose is the “base annual or hourly wage or rate of pay.” It need not include “other forms of compensation or benefits offered in connection with the advertised job,” such as health insurance, severance pay, overtime pay, commissions, tips, bonuses, and stock. Employers must include both a minimum and a maximum salary. Still, if the employer has no flexibility, they are permitted to post a salary where the minimum and maximum salary are identical, for example, “$20 per hour.”  The employer cannot, however, leave the salary range open-ended, such as by stating “$15 per hour and up.”

For more information, please see the links below:

NYC Pay Transparency

NYC Guidance

Previous Vensure Communication (5/17/2022)

Article

What do employers need to do?
Employers should review the links provided above, make adjustments to their job advertisement policies along, review their job descriptions and determine in good faith the position’s target salary range, and be prepared to add the target range to new listings as well as any active listings on the company’s website or third-party job-posting websites if the listing is likely to remain active past the November 1 effective date.

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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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