Business information

City Council Amends New York City Pay Transparency Law

May 2, 2022

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On April 28, 2022, the New York City Council amended the city’s Pay Transparency Act, which was set to go into effect May 15. The amendments delay the effective date of the law until November 1, 2022. The amendments also make additional key changes that are noteworthy for employers.

Brief summary of the law

The Compensation Transparency Act makes it an “unlawful discriminatory practice” under New York City human rights law for an employer who advertises a job, promotion or transfer opportunity without indicating the minimum and maximum salary of the position in the advertisement. The law applies to all employers with at least four employees in New York, and independent contractors are counted towards this threshold. However, the law does not apply to temporary positions advertised by temporary help agencies. The New York City Commission on Human Rights is authorized to take action to enforce the law.

Recent changes

Firstly, the new amendments clarify that only fluent employees may pursue a private right of action against their employers for an alleged violation of law in connection with an advertisement for a job, promotion or transfer opportunity. This significant change eliminates the risk of plaintiffs pursuing private claims against potential employers.

Second, an employer will now have 30 days from receipt of an initial complaint of non-compliance to remedy the employer’s “first time” violation of the law before facing a fine from the Rights Commission. of the NYC man.

Third, the amendments specify that annual salary or hourly salary information must be disclosed in the required postings.

And finally, the new amendments expressly state that positions that cannot or will not be filled, at least in part, in New York City are exempt from the posting requirement.

Take away food

The amendments were passed in response to concerns raised by the business community that the law was unclear, too cumbersome and could lead to an avalanche of litigation. All covered employers in New York should ensure they are prepared to comply with the amended law as of November 1, 2022.

The following Gibson Dunn attorneys assisted in preparing this client update: Harris Mufson, Danielle Moss, Gabrielle Levin and Hayley Fritchie.

Gibson Dunn attorneys are available to answer any questions you may have regarding these developments. To learn more about these matters, please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s labor and employment law practice group, or the following individuals:

Mylan Denerstein – New York (+1 212-351-3850, [email protected])

Gabrielle Levin – New York (+1 212-351-3901, [email protected])

Danielle J. Moss – New York (+1 212-351-6338, [email protected])

Harris M. Mufson – New York (+1 212-351-3805, [email protected])

Jason C. Schwartz – Co-Chair, Labor and Employment Group, Washington, DC
(+1 202-955-8242, [email protected])

Katherine VA Smith – Co-Chair, Labor and Employment Group, Los Angeles
(+1 213-229-7107, [email protected])

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Publicity for Lawyers: The attached materials have been prepared for general information purposes only and are not intended to provide legal advice.