NYC Council Passes Amendment to Salary Transparency Law that would Postpone Effective Date
As employers will recall, earlier this year, New York City enacted a law requiring employers to include the minimum and maximum salary in job postings, effective May 15, 2022. Last week, the NYC Council passed an amendment to the law. The amendment is currently awaiting the Mayor’s signature, but will likely be enacted. Below is a summary of the amendment:
The effective date of the salary transparency law would be delayed from May 15, 2022, to November 1, 2022.
The amendment clarifies that the law would apply to both hourly and salaried positions; employers and employment agencies must include the minimum and maximum annual salary or hourly wage in each job posting.
The law would not apply to positions that cannot or will not be performed, at least in part, in New York City.
The amendment also clarifies how the salary transparency law would be enforced:
Employees would have a private cause of action against their current employer for alleged violations of the law, but no other individuals may file suit against an employer for alleged violations of the law.
An employer would be subject to a civil penalty of $0 for a first violation of the law if the employer cures any violation within 30 days of notice of the violation from the NYC Commission on Human Rights. Submitting proof of cure to the Commission would be deemed an admission of liability.
While the amendment is currently awaiting the Mayor’s signature, given that the amendment passed the City Council by a vote of 43 to 8, it is likely that the amendment will be enacted and that the effective date of the salary transparency law will be postponed to November 1, 2022.
Employers should continue to prepare to comply with the law, including by collecting compensation information and developing procedures for updating job postings. In addition, employers should consult the current guidance released by the Commission in March, which further clarifies employers’ obligations under the law. This guidance may be updated, and we will provide further details if that happens. If you have any questions about the new law or need assistance amending your job postings or related policies, please contact Amanda M. Baker at abaker@fglawllc.com, or any attorney at the firm.
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