New York City Council Passes Bill Requiring Employers to Share Salary Ranges in Job PostingsMay 10, 2022
- Clarify that the law applies to both hourly and salaried positions, meaning that advertisements for any job, promotion, or transfer opportunity must include statements of either minimum and maximum annual salary or minimum and maximum hourly wage;
- Exclude from application of the law positions that cannot or will not be performed, at least in part, in New York City, meaning that the law applies to fully remote positions that could be performed by a resident of New York City;
- Limit private rights of action for violations of the law to current employees, who may bring an action against their employer for advertising a job, promotion, or transfer opportunity without posting a minimum and maximum hourly wage or annual salary; and
- Clarify that the civil penalty imposed by the New York City Commission on Human Rights for an employer’s first violation of the law is $0, provided that the employer corrects the violation within 30 days of service of the relevant complaint. The Commission’s acceptance of an employer’s proof that the violation has been cured amounts to “an admission of liability for all purposes.”
Key points from the Guidance include:
- An “advertisement” that must contain the minimum and maximum salary range is defined as a written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants, regardless of the medium in which it is disseminated. Covered listings include postings on internal bulletin boards, internet advertisements, printed flyers distributed at job fairs, and newspaper advertisements.
- The law covers advertisements for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home. (As discussed below, a proposed amendment to the law may narrow this scope.) The law also applies regardless of whether the advertisement seeks full-time employees, part-time employees, interns, domestic workers, or independent contractors.
- The law currently applies to employers that have four or more employees. The guidance clarifies that the four employees do not need to work in the same location, and they do not need to all work in New York City. As long as one of the employees works in New York City, the workplace is covered. However, as discussed above, only postings or advertisements for jobs, promotions, or transfer opportunities that can or will be performed at least in part in New York City are required to include minimum and maximum salary information.
- The salary information that must be disclosed in job advertisements includes the base wage or rate of pay, regardless of the frequency of payment. For purposes of the law, salary does not include “other forms of compensation or benefits offered in connection with the advertised job, promotion, or transfer opportunity,” such as:
- Health, life, or other employer-provided insurance;
- Paid or unpaid time off work, such as paid sick or vacation days, leaves of absence, or sabbaticals;
- The availability of or contributions towards retirement or savings funds, such as 401(k) plans or employer-funded pension plans;
- Severance pay;
- Overtime pay; or
- Other forms of compensation, such as commissions, tips, bonuses, stock, or the value of employer-provided meals or lodging.
- The guidance states that employers found to have violated the law may be required to pay monetary damages to affected employees and civil penalties of up to $250,000. Employers may also be required to amend advertisements and postings, create or update policies, conduct training, provide notices of rights to employees or applicants, and engage in other forms of affirmative relief.
Additionally, a proposed amendment to the law was introduced on March 24, 2022, and would, if passed, delay the effective date of the law to November 1, 2022. The amendment would also revise the law to:
- Apply only to employers with fifteen or more employees;
- Clarify that both hourly and salaried positions are covered by the law;
- Confirm that minimum and maximum salary information would not be required to be included in general notices that an employer is hiring without reference to any particular position; and
- Exclude from application of the law any positions that are not required to be performed, at least in part, in New York City.
January 20, 2022 Update. The New York City bill requiring employers with four or more employees to include salary information in job postings for positions within the City lapsed into law on January 15, 2022. The law goes into effect on May 15, 2022.
The bill makes it an unlawful discriminatory practice for a covered employer or its agent to advertise a job, promotion or transfer opportunity without stating the minimum and maximum salary for the position in the job posting or advertisement. In stating the minimum and maximum salary range for the position, the range must “extend from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.”
Covered employers include NYC employers with four or more employees. The bill states that independent contractors working in furtherance of an employer’s business enterprise are counted as persons in the employ of such employer.
The bill does not apply to job postings for temporary employment at a temporary help firm, as such firms are already required to provide wage range information in compliance with the New York State Wage Theft Prevention Act.
If enacted, the bill would take effect 120 days after it becomes law. The NYC Commission on Human Rights would be authorized to promulgate rules to implement the law.