The New York City Council is already considering an expansion to the City’s pay transparency law to require NYC employers to include a description of non-salary or non-wage compensation in job postings. Dramatically increasing the burden on employers, the proposed ordinance would require a description of “bonuses, benefits, stocks, bonds, options and equity or ownership, if any.”
As discussed here, New York City’s pay transparency law (Local Law 32 and its amendment), went into effect on November 1, 2022, and requires 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. 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.
On February 2, 2023, the Council introduced Int. No. 907, a local law to amend the administrative code of the city of New York, broadening the information that must be disclosed in job postings.
Specifically, the proposed amendments would expand New York City’s pay transparency law in two ways:
- First, the bill would make it an unlawful discriminatory practice for an employer “to advertise a job, promotion or transfer opportunity without stating a description of the job, promotion or transfer opportunity and the non-salary or non-wage compensation for such position in such advertisement.” Non-salary or non-wage compensation includes bonuses, benefits, stocks, bonds, options, and equity or ownership, if any. Presently, the level of detail that employers should provide in the non-salary or non-wage compensation description is unclear.
- Second, the bill would make it an unlawful discriminatory practice for an employer “to fail to disclose to current employees, annually and upon request, the range of compensation, including bonuses, benefits, stocks, bonds, options and equity or ownership, for such employee’s job title.” Notably, under this proposed amendment, the “range of compensation” should be available “upon request,” which would require employers to ensure that the applicable range of compensation for any given position is regularly updated to ensure compliance.
The proposed amendments were referred to the Committee on Civil and Human Rights for review. There will likely be a hearing on the bill soon. And, if passed, the law will take effect in 180 days.
For now, check back on our blog for developments on this bill and contact a Baker McKenzie employment attorney for assistance navigating this (and other!) pay transparency law(s).