New York City Council Passes Amendments to the New York City Salary Disclosure Law, Including a Delayed Effective Date of November 1, 2022
On April 28, 2022, the New York City Council approved Int. 134-A (the “Bill”) to amend several aspects of the New York City salary disclosure law (Int. 1208-B) (the “Law”), including delaying the original May 15, 2022 effective date to November 1, 2022. The Bill is now before Mayor Eric Adams for his signature, which would enact the Bill into law.
As we previously reported, the Law requires New York City employers with four (4) or more employees to disclose minimum and maximum salary information in job postings, promotions, and transfer opportunities. On March 22, 2022, the New York City Commission on Human Rights (the “Commission”) released guidance regarding employer obligations under the Law. The Bill was introduced just two (2) days after the Commission issued this guidance.
The Bill amends the Law in the following material respects, which in some ways differ from the original version of the Bill that was first introduced:
- As noted above, the Bill amends the effective date of the Law to November 1, 2022.
- The Bill contains an explicit carveout to the Law’s disclosure requirements for “[p]ositions that cannot or will not be performed, at least in part, in the city of New York.” As such, the Bill clarifies that the Law does not apply to positions that cannot or will not physically be performed (at least in part) in New York City.” Notably, assuming the Bill is enacted into law and unless further guidance is issued, the Law does apply to advertisements for remote positions that can be performed wherever the employee resides as that position could theoretically be filled by a New York City resident. Therefore, any employer with four (4) or more employees and at least one (1) employee who works remotely in New York City, will need to disclose the salary range for remote positions.
- The Bill clarifies that the salary range disclosure requirements apply to both salaried and hourly employees.
- The Bill provides that, “[n]o person shall have a cause of action . . . for an alleged violation of this subdivision, except that an employee may bring such an action against their current employer for an alleged violation . . . in relation to an advertisement by their employer for a job, promotion or transfer opportunity with such employer.” As such, the Bill seemingly limits a private right of action under the Law to current employees and excludes applicants.
- The Bill provides for a “safe harbor” provision for first-time offenders of the Law, which permits such covered employers to avoid a civil penalty if certain corrective actions are taken. Namely, the Bill states that upon receipt of a complaint from the Commission, covered employers will have thirty (30) days to cure any violation of the Law. Employers will then be required to submit proof that the violation has been cured and, if acceptable to the Commission, the proof “shall be deemed an admission of liability for all purposes.”
Covered employers should continue to stay up-to-date with any developments, including whether Mayor Adams signs the bill in the coming days before the original May 15, 2022 effective date. Assuming the Bill is enacted into law, the Commission indicated that it will be updating its previously issued guidance to conform to the new amendments.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.