What to know about NYC’s new salary transparency requirements

Beginning May 15, 2022, New York City employers advertising jobs in New York City must include a “good-faith” salary range for every job, promotion and transfer opportunity advertised. The New York City council amended the City Human Rights Law to encourage equity and transparency in pay in January 2022.

The New York City Commission on Human Rights has issued guidance regarding this new provision that outlines certain requirements to which employers must adhere, including:

  • the new law applies to all employers that have four or more employees;
  • covered employers should follow the new law when advertising for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field or remotely from an employee’s home;
  • employers must state the minimum and maximum salary they in good faith believe at the time of the posting they are willing to pay for the advertised job, promotion or transfer opportunity;
  • employers who violate the new provision may have to pay monetary damages to affected employees and civil penalties of up to $250,000.

Credit unions located in New York City are encouraged to ensure their current pay practices are up to date and to consider conducting pay equity audits to assess current issues related to equity in pay. It is also recommended that credit unions work with legal counsel on how to address possible discrepancies in any current pay practices in an effort to further promote internal equity. In addition, credit unions should consider developing and implementing onboarding practices that comply with the new law and are informed by the findings of the pay equity audit.

Several states have already adopted similar laws, and the New York State legislature recently introduced pay transparency legislation.

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