New York City’s Pay Transparency Law went into effect on Nov. 1. Employers with four or more employees, and at least one employee that works in New York City, must post starting and ending pay ranges on job postings and advertisements. The law applies to workers at the employer’s site, in the field, and for those who work remotely at a home located in New York City. The expressed goal of statutes such as New York City’s law is to eradicate systemic discrimination, achieve pay equity, and level the playing field for employees to negotiate salary with greater knowledge. However, these laws have some unforeseen complications that may pose challenges for multi-state employers, and for those employers with remote workers.
For example, an employer located in Arkansas posts a job opening for remote workers on an online nationwide recruiting site. It is likely the company has some employees who reside in New York City but the recruiter posting the advertisement didn’t specifically check. A candidate who resides in Brooklyn, New York sees the ad and believes he is a great candidate for the job. But, the listing does not include any details about the salary range. Is this a violation of New York City’s Pay Transparency Law, or other states that have similar laws or are in the process of enacting such laws? New York City has not yet promulgated regulations on how it will interpret its new law, so we do not yet have a definite answer to this question. But, such a scenario may indeed...
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