Category: Compensation

New York Pay Disclosure Law

New York City Pay Disclosure Law Finalized

With recent amendments, the anticipated New York City pay disclosure law will take effect on November 1, 2022. Covered employers advertising for positions that could be performed in New York City must identify the minimum and maximum salary or wage for each job.

Covered Employers

The New York City pay disclosure law will apply to employers with at least 4 employees as long as one of them works in NYC. Anyone employing one or more domestic workers in the city is also covered.

Covered Job Postings

The law applies to all jobs, including promotions and transfers, that could be performed “at least in part” in New York City. Covered positions may be working either in a facility operated by the employer or remotely, such as in the employee’s home. Even positions with a combination of work locations would be subject to the New York pay disclosure law if part of the job could be performed in New York City.

Covered job advertisements include “any written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants.”

However, the law does not require employers to advertise or post for available positions. It only requires that if an employer chooses to post an opening, they must include the compensation range.

Required Pay Disclosure

Covered job advertisements must state both a minimum and maximum annual salary or hourly wage for the available position(s). By law, “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.”

Though there is little guidance so far on what will qualify as a “good faith” pay range, the New York Commission on Human Rights emphasizes that the range cannot be open-ended. For example, only stating a minimum hourly rate or a maximum salary would be insufficient.

Though unsaid, presumably the New York City pay disclosure range refers to the starting compensation level.

This law does not require employers to advertise any additional information about compensation or benefits such as overtime rates, insurance benefits, or bonus eligibility.

Penalties

A violation of the New York City pay disclosure law will constitute employment discrimination under the New York City Human Rights Law.

Any applicant or employee who feels aggrieved by an alleged violation of the New York pay disclosure law will be able to file a complaint with the New York City Commission on Human Rights. Potential remedies include awarding lost wages and emotional distress damages, among other available relief.

The law contains partial limits on liability, but it is not clear that they will do much to protect employers.

Only current employers may commence a civil lawsuit for a violation of the New York City pay disclosure law. But, again, a much broader scope of individuals have the attractive option of going through an administrative proceeding with the NYC Commission on Human Rights.

The law also provides for no monetary civil penalty for a first violation if the employer cures it within 30 days. However, this does not preclude an aggrieved individual from pursuing and potentially receiving damages in an administrative proceeding. And the NYC Commission on Human Rights may impose penalties of up to $250,000 for uncured or subsequent violations.

Next Steps for NYC Employers

If you have an employee working in New York City, you may need to include a wage or salary range in job postings beginning November 1, 2022. Do you have 4 total employees? Or at least one domestic worker in New York? Could the job you’re hiring for be performed in NYC–even if that’s not the most likely or preferred location?

NYC employers may have the option of not advertising for positions for which they don’t want to disclose a pay range. But if you do post, you will need to decide what a “good faith” wage or salary range is for each position advertised.

 

Could pay disclosure requirements be coming throughout New York State? Follow Horton Law on LinkedIn for our latest updates.

 

Pay Transparency in New York Cover Slide

Pay Transparency in New York (Webinar Recap)

On May 26, 2022, I presented a complimentary webinar entitled “Pay Transparency in New York”. For those who couldn’t attend the live webinar, I’m happy to make it available for you to watch at your convenience.

In the webinar, I discuss:

  • Federal & State Laws
  • New York City Salary Disclosures
  • Multi-Jurisdictional Positions
  • Practical Considerations

and much more!

Beginning November 1, 2022, employers posting for jobs that could be performed in New York City must include a salary/wage range for the positions. Proposed legislation would impose similar or even greater requirements throughout New York State.

This webinar addresses some of the practical considerations and consequences of including pay information in job advertisements in addition to describing the obligations imposed by law.

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “Pay Transparency in New York”

Employers with positions available in New York must be aware of the new legal requirements taking effect in November 2022. But perhaps even before then, New York State may enact broader obligations regarding compensation and benefit information in job postings.

Under current and proposed laws, employers have choices. These include whether to post for jobs in the first place and how large of a pay range to include when they do. What is a “good faith” compensation range? How will you decide compensation in the face of these new obligations? How will they affect overall labor costs?

Plus, learn how these laws could affect unionization efforts and wage negotiations. And hear what you might want to do now to best position your organization for compliance and to avoid allegations of pay inequity.

Don’t Miss Our Future Webinars!

Click here to sign up for the Horton Law email newsletter to be among the first to know when registration is open for upcoming programs! And follow us on LinkedIn for even more frequent updates on important employment law issues.

NY Wage Deductions

New York Wage Deductions (Webinar Recap)

On February 25, 2021, I presented a complimentary webinar called “New York Wage Deductions”. For those who couldn’t attend the live webinar, I’m happy to make it available for you to watch at your convenience.

In the webinar, I discuss:

  • Prohibited Payroll Practices
  • Permissible Deductions
  • Recovery Overpayments
  • Wage Advances

New York laws begin with the premise that employees will be paid their agreed compensation in full for all time worked. Of course, the state and federal governments want their taxes and are happy to allow for such monies to be withheld from paychecks. Some other deductions are also permissible, such as insurance contributions and charitable donations.

But New York is among the most restrictive states when it comes to what employers can take out of their employees’ pay. Not all of the limitations are intuitive. Some prohibited deductions are perfectly acceptable in other jurisdictions, creating additional complications for companies with multi-state operations.

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “New York Wage Deductions”

If you have any role in compensation decisions or payroll in your company with employees in New York, then you should be familiar with these limits on taking money out of employees’ wages.

Did you know that New York employers can’t deduct money due to cash register shortages or as fines for violating workplace rules? (Or, conversely, did you know that these methods are acceptable in some states?)

Yes, New York employers can recover inadvertent overpayments to employees. But only in certain circumstances. And you must follow specific procedures.

Plus, many businesses make loans or wage advancement to employees. Make sure you recognize the restrictions on this practice. They’re discussed in this webinar.

Don’t Miss Our Future Webinars!

Click here to sign up for the Horton Law email newsletter to be among the first to know when registration is open for upcoming programs!

And follow us on LinkedIn for even more frequent updates on important employment law issues.