People throughout New York City have been waiting for the new Pay Transparency Law to take effect for months. Under this new law, employers in NYC are required to include information regarding the minimum and maximum salary for a position in the job posting.
Getting the pay you deserve when searching for a new job can be complicated, especially for employees who belong to certain protected classes that are often underpaid. By providing job seekers with this information up front, more employees will understand how much they can expect to earn in a position, rather than leaving them to guess for themselves. This can help prevent employers from underpaying employees who aren’t aware of the value their position holds.
The Pay Transparency Law was initially supposed to go into effect on May 15, 2022. However, shortly before this day, it was amended and rescheduled to take effect on November 1, 2022.
What does the New York City Pay Transparency Act mean for NYC employees? Learn more about it.
What Does the NYC Pay Transparency Act Do?
The Pay Transparency Act, an amendment of the New York City Human Rights Law, makes it an unlawful discriminatory act to post a job listing without providing the minimum and maximum salaries for a position. Employers must believe, in good faith, when posting a job listing that this is how much they are able to pay for the position. This includes job postings for full-time employees, part-time employees, interns, domestic workers, and independent contractors.
According to the law, salary includes the base annual or hourly wage or rate of pay for a position. It does not include other forms of compensation, such as health insurance, paid time off, and retirement contributions.
This doesn’t only apply to new job postings for outside applicants. Jobs, promotions, and transfers within a company must also provide a salary range for the position.
Employers cannot provide information such as “$20 and up” or provide only the maximum salary they may pay. In some cases, employers may not be required to post a salary range if they have no flexibility. When this is the case, the minimum and maximum salary can be the same, such as simply saying “$20 per hour” if this is the only amount they can offer for the position. </span>
What Employers Does the Pay Transparency Act Apply To?
The Pay Transparency Act applies to employers with four or more employees or one or more domestic workers. These employees also do not all need to be in the same location or all be located in New York City. Workplaces are covered as long as at least one employee is located in NYC. This law also applies to employment agencies regardless of their size. However, it does not apply to temporary help firms.
What Happens if Employers Violate the Pay Transparency Act?
Members of the public can file complaints of discrimination with the Commission on Human Rights. First complaints will not result in civil penalties if the employer fixes the issue within 30 days. Civil penalties for uncured violations can be up to $250,000.
Protect Yourself from Employment Discrimination with Brown Kwon & Lam
The Pay Transparency Act is one of the many protections employees in New York City have. While many federal, state, and local laws exist, it doesn’t always stop employment discrimination from occurring. If your employer violates a law and discriminates against you based on your membership in a protected class, you need an employment discrimination attorney. If you’ve been discriminated against in the workplace, find out how Brown Kwon & Lam can help.
Contact us today for more information.