Original article date: 3/7/22
Beginning on May 15, 2022, “the New York City Human Rights Law (NYCHRL) to require that employers disclose a salary range “from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity” on all job advertisements for positions located in New York City. Employers will also have to include the salary range in all announcements or postings regarding promotion or transfer opportunities.
As the term “salary” is not defined, employers should comply with the new law regardless of whether a position is a salaried, exempt, or hourly non-exempt position. Failure to include a salary range would be considered a discriminatory practice under the NYCHRL. The posting requirement will not apply to temporary positions listed by temporary help firms.” (DWT)
“Kelly Cardin, an attorney in the Stamford, Conn., and New York City offices of Ogletree Deakins, said that the law would apply to employers with four or more employees, including independent contractors, but does not apply to job postings by staffing firms for temporary positions.
“Existing provisions … authorize the New York City Commission on Human Rights to impose civil penalties of up to $125,000 for unlawful discriminatory practices or acts,” Cardin noted.” (SHRM)
So far, only Colorado’s law, like the recent New York City bill, requires employers to include salary ranges in job postings.
Other jurisdictions are considering wage transparency laws. The New York State Senate and Assembly have proposed legislation, S5598A / A6529, which, like the New York City law, would require employers to disclose salary range information to applicants “upon issuing an employment opportunity for internal or public viewing.” Wage transparency bills have also been introduced in Massachusetts and Pennsylvania.
“Employers in 10 jurisdictions (and counting) are now subject to wage disclosure requirements. Colorado and New York City have made headlines as the first jurisdictions to mandate such disclosures. Employers must review the laws of each individual jurisdiction to remain compliant with this growing collection of wage disclosure laws. The following table provides an overview of these jurisdictions and what they require:
While these laws seem similar on their face, each has its own nuance. As a result, using a uniform policy may prove to be a challenge for a multistate employer. For instance, in Rhode Island, employers must not only disclose a wage range for applicants and employees upon transfer or promotion but also must respond to an employee’s request for a wage range for their current position. California, Washington, Connecticut, and Maryland all require disclosure upon request, but Nevada mandates automatic disclosure after an interview for an applicant, or after an application for a current employee.
The New York City law appears to apply to jobs located within New York City only, which leaves an open question as to remote work; Colorado, on the other hand, has taken the position that remote positions require wage disclosure and any employer seeking to get around this requirement by specifically excluding Colorado applicants is not compliant with the law.
In practical effect, the onus is on employers to document their rationale for their hiring and pay decisions. Employers can:
– Document formal job descriptions for both new applicants and promotion/transfer opportunities.
– Determine salary ranges for each job classification using existing data or on a good-faith basis.
– Create internal policies regarding promotion/transfer opportunities within an organization. Develop internal systems for handling employee requests for salary reviews.” (SHRM)