New Guidance on NYC Salary Transparency Law

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The New York City Commission on Human Rights has released new guidance regarding the city’s new salary transparency law, Local Law 32 of 2022. This new law was enacted on January 15, 2022, and requires all covered employers to provide minimum and maximum salaries for all advertised job positions.

When enacted, the language of this law was immensely vague, leaving this guidance long-awaited. This new guidance highly resembles the guidance that Colorado has provided for its salary disclosure law.

Important Points of Guidance

Some of the most important points from the guidance include:

Local Law 32 applies to all employers of four or more employees, including owners if at least one works in the city. The law will also apply in the case of one or more domestic employees. Temporary help firms are exempt from this law.

Employers must provide salary postings with a good faith estimation of the minimum and maximum wages they would pay for all advertised positions. However, they are not required for positions that are not advertised. Employers are still permitted to hire without an advertisement and are not obligated to create an advertisement.

An advertisement is defined by the guidance as a “written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants.” The medium through which the advertisement is disseminated does not matter.

The law’s protections apply to a variety of workers, including postings seeking: “full- or part-time employees, interns, domestic workers, independent contractors, or any other category of worker protected by the NYCHR” Notably, this includes both salaried and hourly positions as well.

Employers are not required to disclose any additional forms of compensation or benefits outside of the salary range. This includes health or other insurance, leave plans, retirement benefits, severance or overtime pay, or alternative forms of compensation such as bonuses or stock plans.

Enforcement of Salary Protections

The guidance also provides information on how the law will be enforced. The Commission on Human Rights will investigate tips it receives from the public. In addition, the Law Enforcement Bureau will actively seek out and begin investigations. If an employer or employment agency is found in violation, they may be subject to civil penalties of up to $250,000 and be required to pay monetary damages and engage in affirmative relief to remedy the violation.

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