NYC Council to Consider Expanding the City’s Pay Transparency Law to Mandate Disclosures Regarding Bonuses, Equity and Other “Non-Wage” Compensation
A proposed ordinance has been introduced before the New York City Council to significantly expand the existing NYC pay transparency law.
As we have previously reported, the current law requires most New York City employers to disclose the minimum and maximum salary or hourly wage for open roles in postings for job, promotions or transfer opportunities. Presently, an employer is only required to include the “base annual or hourly wage or rate of pay” and need not include in the posting other forms of compensation or benefits offered.
The proposed amendment would expand these obligations to also require that advertisements and postings for jobs, promotions and transfer opportunities include “a description of the job, promotion or transfer opportunity and the non-salary or non-wage compensation for such position” in the posting or advertisement. The proposal states that “[s]uch compensation information shall include bonuses, benefits, stocks, bonds, options and equity or ownership, if any.” It is unclear what level of specificity the City will expect in the “description” of such other components of compensation, but the proposed expansion of the law to include such a description is noteworthy.
In addition, the proposed amendment would make it unlawful for employers to fail to disclose to current employees – on an annual basis as well as upon an employee’s request – the “range of compensation” for that employee’s job title, including bonuses, benefits, stocks, bonds, options and equity or ownership.
The proposed amendments have been referred to the City Council’s Committee on Civil and Human Rights for review. If ultimately enacted, the amendments would take effect 120 days after becoming law. We will continue to monitor for and report on updates.