Background
Comment


The New York City Council has passed a bill that, when signed into law, will push the effective date of New York City's wage transparency law back to 1 November 2022 from the original date of 15 May 2022.

Background

On 15 December 2021, the Council passed an amendment to the New York City Human Rights Law (NYCHRL), which made it an unlawful discriminatory practice for an employer with four or more employees (and at least one employee working in New York City) to advertise a job without stating the position's minimum and maximum salary or rate of pay. Notably, the wage transparency law applies not only to public advertisements, but also to internally advertised job, promotion and transfer opportunities.

On 22 March 2022, the New York City Commission on Human Rights (NYCCHR) published guidance to assist employers in complying with the new requirements before they take effect.

However, the Council introduced this new bill on 24 March 2022 (for further details please see "New York City issues guidance related to salary transparency in job advertisements") in order to, among other things:

  • move the effective date of the law to 1 November 2022; and
  • exclude employers with fewer than 15 employees from having to disclose a minimum and maximum salary or rate of pay.

On 27 April 2022, the Council amended the bill before passing it on 28 April 2022, eliminating the fewer-than-15 employees exemption. Accordingly, employers with four or more employees that have at least one employee working in New York City must comply with the city's wage transparency laws.

Comment

The most important thing to know is that the city's wage transparency law will not take effect until 1 November 2022.

In addition, the 28 April 2022 bill specifically states that employers who violate this law for the first time will not be subject to a fine if they:

  • cure the violation; and
  • provide proof of such cure to the NYCCHR no later than 30 days after the employer is notified of the violation.

Employers may be fined up to $125,000 for subsequent violations.

Further, persons aggrieved by alleged discrimination in violation of the NYCHL may generally bring a private cause of action in court to seek recovery of damages, including punitive damages and injunctive relief. However, this bill makes clear that only employees may bring a lawsuit against their current employer for an alleged violation of the wage transparency law.

Non-employees, including applicants, may not bring a private right of action against an employer for failing to disclose the minimum and maximum salary or wage rate when advertising a specific job. Former employees are also prohibited from bringing a lawsuit against their former employer for failing to disclose the minimum and maximum salary or wage rate when advertising a specific job, promotion or transfer opportunity.

With the NYC wage transparency law now set to take effect on 1 November 2022, covered employers should again review the NYCCHR's 22 March 2022 guidance and be on the lookout for additional guidance related to the new additions to the law.

For further information on this topic please contact Carolyn D Richmond, Glenn S Grindlinger or Timothy A Gumaer at Fox Rothschild by telephone (+1 212 878 7900‚Äč) or email ([email protected], [email protected] or [email protected]). The Fox Rothschild website can be accessed at www.foxrothschild.com.