The New York City Council passed a law (Local Law 32) that would require employers advertising jobs in New York City to include a good faith salary range for every job, promotion, and transfer opportunity advertised. Similar legislation is advancing through the New York State legislature that would impact all employers. The NYC law was to take effect on May 15.
On April 5, The Business Council provided testimony to the Council’s Civil and Human Rights Committee in support of Int. 0134-2022 that would make important changes to this law. This week, the City Council announced that an agreement had been reached to amend Local Law 32 and make important changes. According to the announcement, the agreed upon changes will:
- Add coverage for hourly paid workers in the salary transparency law.
- Maintain coverage of all employers with four or more employees.
- Assist small businesses and employers by allowing for an ability to cure non-compliance before a monetary fine is issued for all first-time violations, codifying the enforcement intent expressed by the New York City Commission on Human Rights (CCHR).
- Respond to concerns about language in the initial bill that sought to exclude general hiring posts without a specific position (i.e. a help wanted sign) by removing it entirely.
- Strengthen language to ensure jobs performed virtually in New York or for New York employers are all covered, changing language excluding application of the requirement from “positions that are not required to be performed, at least in part, in the city of New York” to “positions that cannot or will not be performed, at least in part, in the city of New York.”
- Respond to compliance concerns amongst smaller employers by exclusively using CCHR enforcement and fines rather than permitting private lawsuits, except for current employees in relation to job postings by their employers who maintain an ability to sue. This strikes a balance between small businesses’ fears that they will be needlessly sued and pay equity advocates’ concerns that current employees be able to seek damages in court as appropriate.
- Extend the effective date of Local Law 32 to provide an additional six months before the requirements take effect to provide additional time for improved compliance. The new effective date would be November 1, 2022.