New York City Employers Must Include Salary Ranges in Job Postings Beginning May 15, 2022

Sheppard Mullin Richter & Hampton LLP

Sheppard Mullin Richter & Hampton LLP

On December 15, 2021, the New York City Council passed Int. 1208-2018 (“Int. 1208-2018”), a pay transparency bill with significant implications for employers in New York City.  Mayor Eric Adams subsequently took no action with respect to Int. 1208-2018 after its passage, and the bill accordingly became law on January 15, 2022.  Int. 1208-2018 takes effect on May 15, 2022.

Int. 1208-2018 amends the New York City Human Rights Law (“NYCHRL”) to make it an unlawful employment practice for covered employers to advertise a “job, promotion, or transfer opportunity” without stating the minimum and maximum salary for the position in the advertisement.  The stated salary range may extend “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.”  Int. 1208-2018 does not distinguish between internal and external advertisements, meaning that employers should plan to include salary ranges for both external and internal searches.  No guidance has yet been issued as to how employers can or should identify a good faith salary range.

An employer is covered under Int. 1208-2018 if it has had four or more persons “in its employ” in the previous year.  For purposes of determining coverage, employers must count full-time, part-time, permanent and temporary employees, interns, and independent contractors.  However, Int. 1208-2018 excludes job postings for temporary employment at temporary help firms from coverage.  Penalties for violating the NYCHRL include compensatory damages, punitive damages, attorneys’ fees, and civil fines.

The New York City Commission on Human Rights is expected to release more detailed guidance regarding compliance with Int. 1208-2018 prior to its effective date.  In the meantime, covered New York City employers should begin to prepare for compliance by identifying relevant salary ranges for upcoming postings and identifying external and internal posting forms that must be updated.

We will continue to monitor any new developments and provide updates as they become available.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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