As of Tuesday, November 1, 2022, all New York City employers with at least four employees are required to include a wage range in job postings. The law, referred to as Local Law 59, is just one of many similar laws across the country aimed at increasing pay transparency.
The law requires employers to include a minimum and maximum wage range in any advertisement for a job, promotion or transfer opportunity. The term “wage range” refers only to the hourly wage or annual salary of the position and does not include any other forms of compensation, such as benefits or bonuses.
Colorado was the first state to pass such a law-the Equal Pay for Equal Work Act-which took effect in January 2021. Since then, California and Washington have passed similar laws, which will take effect on January 1, 2023. Numerous cities and local governments also have passed similar regulations. On June 2, 2022, the New York state legislature passed Senate Bill S5598D, mandating wage disclosures for all New York employers. The bill has been sent to Governor Kathy Hochul for signature. Proponents suggest these laws are a significant step toward reducing the wage gap between female employees and employees of color and their white male counterparts.
The New York City Commission on Human Rights (the NYCCHR) is responsible for investigating complaints of violations of Local Law 59. The NYCCHR has announced that employers will not be issued a fine after a first offense if the employer remedies its advertisement within 30 days of a warning. Any subsequent offenses may result in civil penalties up to $250,000.
Local Law 59 will not apply to job postings for temporary positions or for positions that will not be performed, at least in part, within New York City.
The NYCCHR published a fact sheet discussing Local Law 59. Employers with questions regarding any pay transparency issues can contact an attorney at Vedder Price for assistance.