NYC pay transparency law goes into effect Nov. 1

Starting Tuesday, Nov. 1, most employers in New York City will be required by law to provide salary ranges to job applicants — a measure intended to help potential workers negotiate fair pay, but one which some small businesses may struggle with.

The City Council enshrined the new requirement into practice with two new laws it passed over the last several months — the first mandated that salary ranges be provided by employers; the second pushed back the effective start date to give businesses time to prepare for the first law.

One of the primary goals of the laws is to address pay inequity, and studies have shown that women and non-white workers are paid less on average than white men.

“The hope is that it will lead to more robust negotiations on offered jobs,” Councilwoman Nantasha Williams (D-Queens), who sponsored the second bill, said on Monday. “The intention is to chip away at pay inequity.”

Councilman Justin Brannan (D-Brooklyn), who worked on both bills, said the new measures will make identifying systemic pay inequity “a lot easier when all of the cards are on the table.”

“The livelihoods of New Yorkers are not a TV game show where the true salary is hidden behind a magic door if only you guess the right one,” he said. “We need to respect that a person has a right to determine whether they will be able to pay rent and support their family before they apply for a job.”

Under the new rules, all employers with four or more employees or one or more domestic workers must include salary ranges in any advertisements for the post being offered. A first-time complaint would not result in fines, but could instead trigger required corrective action on the part of the employer. Subsequent complaints that result in violations could lead to penalties of up to $250,000.

The city’s Commission on Human Rights is responsible for taking complaints and investigating them.

The laws do not prohibit businesses from hiring new employees without advertising a job and also don’t require them to put out job advertisements.

Kathryn Wylde, president of the Partnership for New York City, which represents business leaders, said Monday that she supports pay equity and added that the Council “did what they could to make compliance easier.”

But she predicted the new laws would prove difficult for some small businesses to navigate, contending that posting salaries publicly could lead to discontent for those not being paid in the top range.

“It will not make the lives of employers easier,” she said. “Big companies can afford to manage through that. For small companies, it will be rough.”