New York City employers can breathe a short sigh of relief. On May 12, 2022, New York City Mayor Eric Adams signed a bill into law amending New York City’s pay transparency law (Local Law 32 for 2022, which we previously blogged about here, here, here and here), postponing the law’s original May 15, 2022 effective date to November 1, 2022. The law will require NYC employers with four or more employees to disclose in job postings – including those for promotion or transfer opportunities – the minimum and maximum salary offered for any position located within New York City. Despite the delay of the effective date, employers should prepare so they can comply by November 1, 2022.

As we previously reported, the law (as amended):

  • Requires employers to provide the minimum and maximum salary for any position located within New York City. This range may extend from the lowest to the highest salary that the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.
  • Covers all employers that have four or more employees (or one or more domestic workers). Owners and individual employers count towards the four employees. 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.
  • Does not apply to positions that cannot or will not be performed in New York City.
  • Applies to employees who are paid hourly or through an annual salary.
  • Limits lawsuits based on the law to lawsuits brought by individuals who are current employees bringing an action against their employer for advertising a job, promotion or transfer without posting a minimum and maximum hourly wage or annual salary.
  • Provides that there is no monetary penalty for the first violation of the law, and that employers will have 30 days to correct the violation.

The New York City Commission on Human Rights (NYCCHR) released a Fact Sheet in March providing details on employers’ obligations under the law. Employers should keep an eye out for an updated Fact Sheet addressing the amended law. In addition, the NYCCHR is authorized to promulgate rules to implement the new bill, so employers should also keep an eye out for the anticipated rules as well.

The uptick in pay transparency laws across the US

With the current focus on equal pay for equal work, New York City’s pay transparency law is just another in a nationwide trend imposing pay transparency requirements on employers, including wage range disclosure obligations. However, the laws vary regarding where, when, how and to whom required disclosures must be made. For instance:

  • California requires employers to provide job applicants with the salary or hourly wage ranges for positions upon the applicant’s reasonable request, provided the applicant has completed an initial interview with the employer. (Effective January 1, 2018)
  • Colorado requires employers disclose the pay, or pay range, of a position in the job posting itself, along with a description of incentive compensation and benefits. (Effective January 1, 2021)
  • Washington’s recent amendment to its Equal Pay and Opportunity Act (see our blog, here)–similar to Colorado–requires disclosure of wage, salary and benefit information in job postings. However, it leaves unchanged a prior requirement that employers provide the same information to employees offered new positions or promotions within the company only when requested. (Effective January 1, 2023)

Multistate employers should consult with Baker McKenzie employment attorneys for strategies to address the varying requirements across jurisdictions. And for New York City employers navigating New York City’s new pay transparency law, reach out to your Baker McKenzie employment attorney for assistance.