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New York City Amends Salary Transparency Law and Delays Implementation

Insight
May 10, 2022
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Insight
May 10, 2022

In our April 28, 2022 post, we discussed New York City’s new salary transparency law that would require all New York City employers with more than four employees to state the minimum and maximum salaries whenever they “advertised” a job, promotion, or transfer opportunity. As we predicted it might, the New York City council has amended the new law, which had previously been scheduled to go into effect on May 15, 2022.

The amendments should be welcomed by New York City employers. First, the amendments make it clear that the law will only apply to positions that can be performed, at least in part, in the city of New York. Second, only employees (successful applicants or employees who have been promoted for a job and were not provided required salary information) can assert a cause of action under this law. An unsuccessful applicant will not be able to sue.

Additionally, employers will have an opportunity to cure a “first time” violation of the law, provided they “cure” the violation within 30 days of receipt of the complaint. Considering that the law provides for penalties up to $125,000 per violation, or up to $250,000 for willful violations, this should be a relief to employers. That said, employers will only get one free pass under the law.

Finally, as a result of these amendments, the law will not become effective until November 1, 2022, which will give employers a little more time to prepare for the new law.

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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.