NYC Pay Transparency Act
The New York City Pay Transparency Act, which went into effect November 1, 2022, aims to reduce wage discrimination and promote equal pay for all employees in New York City. This new law requires employers to provide wage and salary information in job postings as well as to employees (upon request). The law also prohibits employers from taking adverse action against employees who inquire about, discuss or disclose their own wages or the wages of others.
The act applies to all employers with four or more employees and covers all employees, regardless of immigration status. Employees can request wage information directly from their employer, or they can obtain it through another employee who has access to the information and employers must provide this information within 21 days of the request.
In addition to promoting pay transparency, the act also includes anti-retaliation provisions that protect employees who request or disclose wage information. Employers cannot take any adverse action against an employee for making a request for wage information or for discussing or disclosing their own wages or the wages of others.
This new law provides significant benefits for employees in New York City. By allowing employees to compare their wages with their coworkers, it helps to reduce wage discrimination and promotes equal pay for all employees. It also provides prospective employees with the information they need to negotiate for better wages when interviewing and to understand the factors that impact their pay.
For employers, the New York City Pay Transparency Act serves as a reminder of the importance of paying employees fairly and equitably. Employers should review their pay practices to ensure that they are in compliance with the new law, and should educate their employees about the new law and their rights and obligations under it.
The New York City Pay Transparency Act is a major step forward in promoting equal pay and reducing wage discrimination in New York City. By providing employees with the information they need to understand their pay and negotiate for better wages, the act empowers employees and promotes fairness in the workplace. Employers should take steps to ensure that they are in compliance with the new law, and employees should understand their rights and obligations under it.
If you are an employer with questions about how the New York City Pay Transparency Act may affect your business and what steps you need to take to make sure you’re complying with the law, contact us today to schedule a free consultation.
