New York City Employers Required to Disclose Salary Ranges in Job Postings Starting Nov. 1

Effective November 1, 2022, New York City’s pay transparency law will require most employers to disclose salary ranges in their job postings. NYC Local Law 32, known as the “Pay Transparency Law” (Law), will require employers hiring in New York City to disclose the minimum and maximum annual base salary or hourly wage for a job, promotion or transfer opportunity in any advertisement for the position.

The Law amends the New York City Human Rights Law (NYCHRL) by making it an unlawful discriminatory practice to advertise a job, promotion or transfer opportunity without including in the advertisement the range of base salary (or wage) the employer believes, in good faith at the time of the posting, it would pay for the advertised position.

What you should be doing now to comply:

• Assess policies for determining salaries and make adjustments where necessary. Determine and document pay ranges for all positions.
• Review existing job posting templates or create new templates (including internal listings for promotion and transfer opportunities) and ensure they incorporate job descriptions for the roles.
• Train supervisors and managers, as well as compliance and human resource staff on the implications of the disclosure obligation and take steps to ensure that recruiters are prepared to comply with the impending law.
• Develop a process to consistently publish the expected wage range in connection with internal and external job postings.
• Consider conducting a pay equity audit to make sure there are no significant discrepancies that may be revealed once you are required to post salaries on new job listings.

Transparency is trending.
All employers must have pay transparency at top of mind, as this continues to be the popular trend in pay equity legislation. Colorado and Washington have endorsed similar pay transparency laws requiring disclosure of salary in job postings. Some jurisdictions, like Connecticut, Nevada, and Rhode Island require employers to proactively disclose salary ranges to candidates during the hiring process but not in job listings, while others require employers to provide pay ranges to candidates upon request (such as California, Maryland, and Cincinnati and Toledo, Ohio). We expect additional states and cities to consider similar pay transparency laws in the coming months. California, for example, has a pending bill which would require employers to provide the pay scale for a position to applicants, and some form of pay transparency laws have been proposed in Alaska, Massachusetts, Michigan, South Carolina, and Vermont.

Phyton Talent Advisors will continue to monitor and report on further developments. For more information on this law and what you can do to comply, contact us today.