Several recently passed salary transparency rules are now in effect across New York City. Per these laws, employers advertising a job opening must include a good-faith salary range for the position. This measure is an attempt to make it easier for job seekers to make informed decisions and receive fair pay. Unfortunately, there could still be disputes if violations occur.
Issues to keep an eye on
While it will take some time for everyone to get used to the salary transparency requirement, there are some initial failures that could create problems for employers.
Some of the ways an employer might violate the new law include:
- Failing to list the salary range
- Being dishonest with minimum or maximum salary
- Using an open-ended range
- Including benefits or other forms of compensation in the salary calculations
- Continuing to use discriminatory practices in paying workers
- Advertising different salary ranges in different places
- Paying less than the advertised range
An employer who violates the law, either intentionally or because they do not understand their new obligations, will face penalties for failing to comply with the law.
Addressing and preventing violations
Violations of this new law can have serious consequences for employers. First violations will trigger a warning and a window of 30 days to get in compliance, but additional violations can lead to fines of up to $250,000. To avoid these costly penalties, business owners should update their practices and review their policies for hiring, promoting or relocating employees with an attorney.
Employees who uncover violations of this law can file an anonymous report with the New York City Commission on Human Rights Law. In some cases, employees may be able to file civil lawsuits citing wage violations or discrimination.
Both employers and employees should know what this new law requires. Should issues arise, consulting an experienced attorney can help parties understand their legal options and rights.