Implementation of NYC Salary Disclosure Law Delayed to Nov. 1

On April 28, the New York City Council passed an amendment to the City’s salary disclosure law that extends the effective date of the law to Nov. 1, 2022. The amendment will go into effect upon Mayor Eric Adams’ signature, which is expected in the coming days. Without the amendment, the law had been scheduled to go into effect on May 15, 2022, so employers now have an additional five and one-half months to prepare to comply with the law’s requirements. 

The amendment also clarifies that the salary disclosure law does not apply to positions that “cannot or will not, in whole or in part, be performed” in New York City, echoing recent guidance issued by the New York City Commission on Human Rights (Commission). This exception means any position that is not being performed in New York City is not subject to the law. However, it also means that postings for remote positions that theoretically could be performed by a person in New York City must comply with the law.

In another major change, the amendment also provides that the only people who can bring a claim based on a violation of the law are current employees who bring an action against their employer for advertising a job, promotion or transfer opportunity without posting a minimum and maximum hourly wage or annual salary. This means that applicants will be unable to file a claim against a company for failure to comply with the law. In addition, if an employer cures any violation within 30 days after receiving notice from the Commission by modifying the posting, no administrative penalty applies (which under the law may otherwise have been as high as $250,000); however, if accepted by the Commission, the submission of proof of a cure will be deemed an admission of liability by the employer.

The amended salary disclosure law now states: 

It shall be an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise a job, promotion or transfer opportunity without stating the minimum and maximum annual salary or hourly wage for such position in such advertisement. In stating the minimum and maximum annual salary or hourly wage for a position, the range may extend from the lowest to the highest annual salary or hourly wage the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity. 

Compliance with the law will require planning and, often, development of data to be able to provide the required salary information. Employers are encouraged to act promptly to ensure they are adequately prepared to be in compliance with the amended law by Nov. 1.

Please contact a member of Kramer Levin’s Employment Law department with any questions or concerns about the topics raised in this alert.