Co-funded by the European Union

New York: Employers Must Include Salary Ranges in Job Postings

  • On 15 December 2021, the New York City Council approved Bill 1208-2018, that will require New York City employers to include salary ranges in any job advertisements.
  • It takes effect on 15 May 2022.

The Bill amends the New York City Human Rights Law (“NYCHRL”), making it an unlawful and discriminatory practice for an employer, employment agency, or their agents to advertise a “job, promotion, or transfer opportunity” without stating the minimum and maximum salary for the position. 

The Bill does not define the term “salary” and its range may extend “from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.” However, no guidance has yet been issued to help employers to identify a good faith salary range.

It is recommended that employers plan to include salary ranges for both external and internal searches. An employer is covered under Bill 1208-2018 if it has had four or more persons “in its employ” in the previous year and, for that purpose, employers must count full-time, part-time, permanent, and temporary employees, interns, and independent contractors.

Temporary staffing firms are exempt from this legislation as they already provide this information after interviews in compliance with the NY State Wage Theft Prevention Act.

The New York City Commission on Human Rights is expected to release a more detailed guidance regarding compliance with Bill 1208-2018 and its application, but employers must start to consider identifying relevant salary ranges for upcoming postings.

The measure follows the introduction of laws prohibiting New York employers from asking job applicants about their salary histories ad aims to achieve a pay equity and transparency in the City.

Similar laws on pay transparency already exist in California and Colorado.

In the 2021 Compensation and Culture Report, compensation management software provider Beqom confirms that implementing more transparent and inclusive pay practices is the key to attract and retain employees in the USA (United States of America).