Employers face new challenges in navigating state and local pay equity laws. New York City joins a number of other jurisdictions that now require employers to disclose pay ranges when advertising job postings – including for incumbents as well as new hires. This law is set to take effect on May 15, 2022 (unless delayed by pending legislation discussed below). The New York City Commission on Human Rights (the “NYCCHR”) recently published a fact sheet providing guidance with regard to Local Law 32 of 2022 (the “NYC Law”). The NYC Law requires all covered employers to include a minimum and a maximum salary in any advertisement for a job, promotion, or transfer opportunity.
The first quarter of 2022 continued the trend of increasing regulation of the workplace by state and local governments. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance. (Please note that developments related to issues such as minimum wage rates and COVID-19 are not included.)
On Equal Pay Day (March 15, 2022), President Biden issued an executive order aimed at advancing the effectiveness in federal contracting by promoting pay equity and transparency in tandem with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs’ (OFCCP) first formal directive (DIR 2022-01) during the Biden administration on pay equity in federal contractors. The directive addresses the OFCCP’s position on obtaining compensation related documents sought during the agency’s audits, which includes pay equity review.
On March 24, 2022, a new pay data reporting requirement will take effect for certain private employers in Illinois. Detailed discussions of this requirement and other aspects of the recent amendments to the Illinois Equal Pay Act of 2003 have appeared in prior posts, which are accessible here and here. Below are some key things you should know now.
In recent years, Illinois has enacted a complement of laws designed to address historical pay inequities among genders, races and other protected categories. Those laws prohibit employers from requesting or relying on an applicant’s salary history when making hiring decisions and impose a standard for proving equal pay claims less rigorous than the federal standard. Last summer, we reported here of yet another Illinois equal pay development, when Illinois amended the Equal Pay Act of 2003, 820 ILCS 112/1, et seq. to require certain employers to obtain an equal pay registration certificate from the Illinois Department of Labor (IDOL) between March 24, 2022 and March 23, 2024, and every two years thereafter.
Employers who have more than 100 employees in the state of Illinois and are required to file an EEO-1 report with the EEOC are subject to this certification requirement. The window for obtaining the required certificate opens on March 24, 2022, and IDOL recently announced that it had begun sending notices to employers reminding them to register with IDOL.
Several states and localities have passed laws that seek to address pay inequity, based on gender, race and other protected categories. While the intent behind these laws is similar, the laws impose different obligations. New York City is the latest locality to impose a salary range disclosure requirement on employers. On January 15, 2022, the New York City Human Rights Law (NYCHRL) was amended to prohibit employers with four or more workers (including independent contractors) from advertising a job, promotion or transfer opportunity without stating the minimum and maximum salary for the position. The 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. New York City’s salary range law is effective May 15, 2022.