Time to Prepare for the New York City and Westchester County, NY Wage Transparency Laws
New York City Salary Transparency Law
When does the New York City salary transparency law go into effect?
The New York City salary transparency law goes into effect on November 1, 2022.
Who is covered by the New York City law?
Employers with four or more total employees, at least one of who is located in New York City. Owners and individual contractors count towards the four employees. The four employees do not need to work in the same locations, and they do not need to all work in New York City.
What jobs are covered under the law?
Advertisements for jobs, promotions and transfer opportunities for full-time, part-time, interns, domestic workers, independent contractors, or any other category of worker protected by the New York City Human Rights Law are covered under the law.
An “advertisement” is defined as a “written description of an available job promotion or transfer opportunity that is publicized to a pool of potential applicants.” The law applies regardless if the advertisement is posted internally or externally. The law does not create the requirement to develop a job advertisement.
The law applies when advertising for positions that “can or will be performed in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.”
What information must be included in the covered job advertisements?
The law requires the job advertisement include the compensation range, from the lowest to the highest amount that the employer in good faith believes at the time of the posting it would pay for the advertised job, posting or transfer opportunity. Employers must include both a minimum and a maximum salary. The salary range cannot be open ended. For example, a job posting that says “$15 per hour and up” or “maximum $50,000 per year” would not comply with the law.
If an employer has no flexibility in setting compensation for a position, the minimum and maximum salary may be identical, such as “$20 per hour.”
Salary includes the base annual or hourly range or rate of pay, regardless of the frequency of employment.
Salary does not include employer-provided insurance, paid time off, vacation or other forms of compensation, such as commissions, tips, bonuses, stock or the value of employer-provided meals or lodging.
Who can file a complaint?
Only current employees may file an action against their employer with the New York City Commission on Human Rights for advertising a job, promotion or transfer opportunity without posting a minimum and maximum hourly wage or annual salary.
What are the penalties?
There will be no penalty for first violations if the employer corrects the violations within 30 days. However, an employer’s submission of proof that the violation was corrected “shall be deemed an admission of liability for all purposes.”
For additional violations, covered employers may have to pay civil penalties of up to $250,000.
Click here to view the NYC Commission on Human Rights guidance of the salary transparency law.
Westchester County, NY Salary Transparency Law
When does the Westchester County salary transparency law go into effect?
The Westchester County salary transparency law goes into effect on November 6, 2022.
Who is covered by the Westchester County law?
The Westchester law applies to employers with at least four employees located in Westchester County. Independent contractors are not included in determining the four employee threshold. The law does not specify whether owners are included in the employer threshold and whether all four employees must be located in Westchester.
What jobs are covered under the law?
The law applies to positions that are required to be performed, in whole or in part, in Westchester County, whether in person, in the field or remotely.
A “posting” is any written or printed communication, whether electronic or hard copy, that the employer is recruiting and accepting applications for a specific position.
The law does not create the requirement to develop a job advertisement.
The salary posting requirement will not apply to general “Help Wanted” advertisements not specifying a position that are affixed to an employer’s worksite.
What information must be included in the covered job advertisements?
Covered employers must disclose the compensation range, from the lowest to the highest amount that the employer in good faith believes at the time of the posting it would pay in all postings for jobs, promotions or transfer opportunities.
The law does not identify what compensation must be included or excluded. There is no information when there is no range for a position.
Who can file a complaint?
There is no information in the law and no guidance on who can file a complaint.
What are the penalties?
Civil penalties not to exceed $125,000, and civil penalties not to exceed $250,000 for willful violations.
Prohibition on Requesting Compensation History
Under the Westchester County law, employers cannot ask or require applicants to reveal their compensation history, ask a former employer for the applicant’s compensation history, or rely on that wage history in determining compensation. The sole exception to this prohibition is when the applicant voluntarily provides compensation information to support a higher wage.
Preemption Clause
The Westchester County law has a preemption clause, which states the law will be “null and void” if a New York State or federal wage transparency law is enacted with the same or substantially similar provisions.
Please reach out to us with any questions or comments.