Pay Equity New York (USA)

Basic Summary

New York State and New York City have comprehensive pay equity laws including salary range disclosure requirements, a pay history ban, and strong equal pay protections. NYC's Pay Transparency Law requires employers to include salary ranges in all job postings.

Key Legislation

New York State Pay Equity Law (Labor Law § 194)

Strengthened in 2015 to prohibit wage differentials for substantially similar work based on protected characteristics.

New York City Pay Transparency Law (Local Law 32 of 2022)

Effective: November 1, 2022 (amended May 2023)

Requires salary range disclosure in all job advertisements for positions that can/will be performed in New York City.

Salary History Ban (State and City)

New York State: Effective January 6, 2020 New York City: Effective October 31, 2017

Prohibits employers from asking about salary history.

NYC Pay Transparency Law

Scope

Covered employers:

• 4+ employees (as amended in 2023; originally 15+)
• Includes owners, employees, independent contractors, and domestic workers in the count
• Applies to positions that can or will be performed in NYC (in whole or in part), whether remote or in-office

Covered postings:

• Internal and external job postings
• Promotions and transfer opportunities
• Online, print, or any public advertisement

Requirements

Every job posting must include:

1. Minimum salary or hourly wage
2. Maximum salary or hourly wage

"Salary" defined as:

• The annual salary or hourly wage
• Does not need to include bonuses, commissions, tips, equity, or other forms of compensation (but employer may choose to include)

Range requirements:

• Must be a good faith range the employer believes it would pay at the time of posting
• Cannot be open-ended (e.g., "$50,000 and up" is non-compliant)
• Reasonable spread (e.g., $50,000-$500,000 would likely be challenged as not good faith)

Exemptions

Not required for:

• Positions that cannot or will not be performed in NYC (even if remote)
• Temporary staffing firm advertisements for general inquiries (but specific job postings must comply)

Enforcement

Enforcement body: NYC Commission on Human Rights (CCHR)

Penalties:

• First violation: Opportunity to cure within 30 days (no penalty if cured)
• Subsequent violations: Civil penalties up to $250,000 for willful, wanton, or malicious violations
• Pattern violations: Uncapped penalties

Complaint process:

• Employees, applicants, or any member of the public can file complaints
• CCHR investigates and can issue fines

New York State Salary History Ban

Prohibition

Employers cannot:

• Ask about an applicant's current or prior salary, benefits, or other compensation
• Search public records for salary history
• Rely on salary history in determining what to offer

Exceptions:

• Applicant voluntarily and without prompting discloses salary history
• Salary history is publicly available under federal/state Freedom of Information laws (and applicant is currently employed by a public employer)

Applicability

• All employers in New York State
• Covers all stages of hiring process

Penalties: Complaints handled by New York State Division of Human Rights or through civil lawsuits.

New York City Salary History Ban

Similar to state law but enacted earlier (2017).

Additional protections:

• Employers cannot rely on salary history even if voluntarily disclosed by applicant

Equal Pay Protections

New York State Labor Law § 194

Prohibits wage differentials for substantially similar work when based on protected characteristics, including:

• Sex
• Race
• Color
• Religion
• National origin
• Disability
• Age
• Sexual orientation
• Gender identity

Substantially similar work: Assessed under composite of:

• Skill
• Effort
• Responsibility
• Working conditions

Permissible differentials based on:

• Seniority system
• Merit system
• System measuring earnings by quantity or quality (e.g., commissions)
• Bona fide factor other than protected characteristic (must be job-related, based on legitimate business reason, and account for entire differential)

Remedies for Violations

Damages:

• Back pay (up to 6 years)
• Liquidated damages (equal to back pay)
• Attorney's fees and costs

Prohibition on retaliation: Cannot retaliate against employees who discuss wages or file complaints.

Wage Disclosure Rights

Employees have the right to:

• Discuss wages with co-workers
• Inquire about employer's wage practices
• File complaints without retaliation

Employers cannot:

• Prohibit employees from discussing wages
• Retaliate for wage discussions or equal pay inquiries

Best Practices for Employers

Salary Range Posting (NYC)

1. Determine ranges in advance: Establish good-faith ranges based on budget, market data, and internal equity
2. Be realistic: Avoid excessively wide ranges that undermine transparency
3. Update job templates: Include salary ranges in all standard job posting formats
4. Train recruiters: Ensure all hiring managers and recruiters include ranges in postings
5. Audit postings: Regularly review job ads for compliance

Salary History Ban Compliance

1. Train interviewers: Remove salary history questions from applications and interviews
2. Update forms: Delete salary history fields from applications
3. Focus on budget: Ask about salary expectations or share the budgeted range
4. Document: If applicant volunteers salary history, note it was unsolicited

Pay Equity Audits

1. Analyze pay data: Identify disparities by protected characteristic within job families
2. Use regression analysis: Control for legitimate factors (experience, performance, etc.)
3. Remediate gaps: Adjust pay where differentials are not justified
4. Document decisions: Maintain records of pay-setting rationale

Resources

• NYC Commission on Human Rights: https://www.nyc.gov/site/cchr/
• NYC Pay Transparency Law Guidance: https://www.nyc.gov/site/cchr/law/pay-transparency.page
• NYS Division of Human Rights: https://dhr.ny.gov
• NYS Department of Labor: https://dol.ny.gov
• Equal Pay Guidance: https://www.nyc.gov/site/cchr/law/equal-pay.page

Compliance Calendar

Date	Action
Ongoing	Include salary ranges in all NYC job postings
Ongoing	Refrain from asking about salary history
Ongoing	Respond to employee requests for wage information
Annual	Conduct internal pay equity audit (recommended)

Comparison: NYC vs. NYS Laws

Requirement	NYC	NYS
Pay transparency	Yes (4+ employees)	No state requirement
Salary history ban	Yes (no use even if disclosed)	Yes (can use if voluntarily disclosed)
Equal pay	City Human Rights Law	State Labor Law § 194
Enforcement	CCHR	Division of Human Rights

Employers operating in NYC must comply with both city and state laws (whichever is stricter applies).

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Disclaimer: This guide is for informational purposes only and does not constitute legal advice.