NYC pay transparency law may apply to suburban firms too
Office workers walk near the Goldman Sachs Group headquarters in Manhattan. New York City will require employers as of Nov. 1 to disclose “a good faith salary range for every job, promotion, and transfer opportunity advertised.” Credit: Bloomberg/Michael Nagle
A new New York City law that requires employers to include salary ranges in job postings is creating a cloud of uncertainty for Long Island companies that have workers or jobs in the five boroughs.
The law, which takes effect Tuesday, requires employers with four or more employees, including at least one who works in New York City, to post a minimum and maximum salary for available jobs, promotions or transfer opportunities.
Long Island labor law experts said that ambiguities in the regulations likely will be resolved through further interpretation by the New York City Commission on Human Rights, the agency charged with enforcing the measure, and by potential court challenges.
“For those Long Island employers who have employees living in the five boroughs, they arguably have to comply with this law,” said Domenique Camacho Moran, a labor and employment lawyer at Uniondale-based Farrell Fritz.
What to know
- Salary ranges will be required in job postings beginning Tuesday in New York City.
- Long Island companies with workers or operations in the five boroughs may have to comply.
- Pay transparency will change the dynamics of many companies, experts say.
She cited language on the Human Rights agency’s website that said: “Covered employers should follow the new law when advertising for positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.”
Rick Ostrove, an employment lawyer at Carle Place-based Leeds Brown Law, said that questions are likely to arise about how to interpret what constitutes work in New York City.
“What about a business in Nassau County that sells products in New York City?” he said. “As with all laws, there will be court interpretations.”
A similar law requiring pay transparency by businesses across the state was approved by both houses of the New York State Legislature and is on the desk of Gov. Kathy Hochul. A spokesman said she “is reviewing” the legislation.
If she signs the measure, it would take effect nine months later.
David Rosenberg, a Melville employment lawyer, said revealing the ranges of salaries will help change workplace dynamics.
“This protects the employee, and it’s a long time coming,” he said. “They should at least have a fair shot of trying to estimate salaries that are reasonable for their services. It will help root out discrimination.”
Business groups, including New York City's five borough chambers of commerce, have argued that the law could create “dissatisfaction in the workforce and demands to adjust existing pay scales that the employer may be unable to afford."
But Rosenberg argued that transparency will benefit companies as well.
“It also erases suspicion from the mind of the employee” that they are being underpaid or the victim of discrimination, he said.
Colorado was the first to adopt a salary transparency law in 2019, followed by California, Maryland, Nevada, Rhode Island, Connecticut and Washington, as well as cities including Cincinnati and Toledo, Ohio.
Rules for salary disclosures vary. In some cases, they require employers to share the information upon request or after an interview, with exemptions for small businesses. In other cases, employers must post salary ranges.
New York City’s law is similar to Colorado’s, but it applies only to employers with four or more workers rather than all businesses. That accounts for roughly 90% of workers, according to state Labor Department statistics.
The New York State law mirrors New York City in applying the regulation to companies with four or more employees.
In 2021, the median pay for full-time women workers nationwide was about 83% of men’s pay, according to federal data, and women made less than their male counterparts in nearly all fields. For women of color, the numbers were even worse. A report by the National Partnership for Women and Families found that Black women made 64 cents for every dollar paid to white, non-Hispanic men. For Latina women, it was 54 cents, and for Native American women, it was 51 cents.
As of Aug. 31, only 12% of U.S. jobs posted online disclosed salary, according to Talent.com, whose site hosts 50 million job listings globally, including 25 million in the United States.
The transparency required under the new laws could benefit both companies and job applicants, who sometimes go through exhaustive interview processes only to discover at the end that their salary expectations are “misaligned,” Ostrove said. “Eliminating the time wasted alone is a huge benefit to both sides.”
— With Jamie Herzlich and The Associated Press
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
