On November 1, 2022, New York City’s pay transparency law went into effect. Although passed in December 2021, the City Council delayed implementation to clarify and improve certain aspects of the law. The pay transparency law, a part of the New York City Human Rights Law (NYCHRL), will be enforced by the New York City Commission on Human Rights.
Under this new law, employers, in good faith, must state the minimum and maximum salary they are willing to pay at the time of posting. Neither the minimum nor the maximum may be open ended; for instance, “$15 per hour and up” or “maximum $50,000 per year” would not be consistent with the new requirements. An employer is allowed to post a singular minimum and maximum if there is no flexibility for pay.
The law covers all employers that have four or more employees or one or more domestic workers. Owners and individual employers count towards this four-employee limit. An employer is covered if at least one of its employees work in New York City, even if some do not. Employment agencies are covered regardless of their size. Firms who recruit temporary workers are exempt and may seek applicants to join their pool of available workers without posting a pay range.
The law applies to any advertisement for a job, promotion, or transfer opportunity that would be performed in New York City. The law covers positions that can or will be performed, in whole or in part, in New York City; this includes postings for virtual positions, in-person jobs in the City, or for New York City employers. The law applies only to job advertisements and does not prohibit employers from hiring without the use of advertisement.