On January 15, 2021, the New York City Council enacted Local Law 32 (the “Salary Transparency Act”) amending the New York City Human Rights Law to require employers to state the minimum and maximum salary for any position located in New York City. The new Law permits employers to use a good faith belief at the time of the posting to state a range that includes the lowest to the highest annual salary or hourly wage the employer would pay for the advertised job, promotion or transfer opportunity.

Recently, on April 28, 2022, the New York City Council passed a bill to amend the Salary Transparency Act.  Regardless of the amendment, the Salary Transparency Act still makes it unlawful for an employer to “advertise a job, promotion or transfer opportunity without stating” the compensation range for the position.

The amendment to the Salary Transparency Act includes the following substantive revisions and additions:

• Postpones the Effective Date to November 1, 2022. Initially, the effective date of Salary Transparency Act was on May 15, 2022.  The current amendment, however, delayed the effective date to November 1, 2022.  This delay will provide employers more time to prepare and comply with the law when enacted.
• Clarifies the Law Extends to Hourly and Annual Salary Workers. The amendment states it is unlawful for an employer to advertise a job “without stating the minimum and maximum annual salary or hourly wage for such position in advertisement,” specifically clarifying an employer also must post the minimum and maximum hourly wage for hourly employees.
• Clarifies the Reach of the Salary Transparency Act. Initially, following the passage of the Salary Transparency Act, the positions subject to the posting requirements were somewhat unclear.  The amendment clarifies that the Salary Transparency Act does not apply to “[p]ositions that cannot or will not be performed, at least in part, in the city of New York.”  In comparison, the original version excluded from coverage “Positions that are not required to be performed, at least in part, in the city of New York.” The modification creates a higher standard to exclude potentially remote jobs.  Therefore, employers should consider whether the advertised job “cannot” or “will not” be performed in New York City to determine whether the job is subject to the posting obligation.  If an employer located in New York City is seeking to fill a role that cannot or will not be performed in New York City, then the employer does not need to post the salary or hourly range.
• Clarifies Employee’s Remedies Under the Law. This amendment permits only current employees to bring an action against their current employer for an alleged violation of this law.  An employer’s first violation of this law constitutes a fine of $0.  Additionally, the employer is given an opportunity to cure their first violation within 30 days.

The Amendment still leaves vague what is considered “salary.”  For example, it appears not to include discretionary compensation.

The original law also excludes temporary jobs advertised through placement agencies.

Nelson Mullins previosuly blogged on this Law at https://www.nelsonmullins.com/idea_exchange/blogs/the-hr-minute/new-york/new-york-city-council-approves-bill-regulating-job-postings

For more information or specific advice on the Salary Transparency Law, please feel free to contact Mitch Boyarsky or an attorney in the Nelson Mullins Employment and Labor Practice Group.