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The New York City Council has overridden Mayor Eric Adams’ veto of two pay reporting bills. Large employers operating in New York City will soon be required to adhere to onerous new pay reporting requirements.
United States
New York
Employment and HR
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The New York City Council has overridden Mayor Eric Adams’
veto of two pay reporting bills. Large employers operating in New
York City will soon be required to adhere to onerous new pay
reporting requirements. The stated purpose of the law is to promote
wage transparency and to identify perceived pay disparities based
on race and gender. As a result, employers will face challenges as
to compliance and data integrity issues. Also, employers must
anticipate that aggregated pay date will inform public pay equity
analysis that the new Mamdani administration may pursue to further
its policy priorities.
The new ordinances apply to private employers with more than 200
employees working in New York City. Once implementation is
complete, covered employers will be required to submit annual pay
data reports containing compensation information, as well as
demographic and occupational data, for their New York City
workforce. The reporting structure is expected to be modeled after
the federal Component 2 EEO-1 pay data reports that were previously
required by the EEOC for the 2017 and 2018 reporting
periods.
Implementation Timeline and Agency Authority
The legislation does not impose immediate reporting obligations.
Instead, it establishes a timeline:
- By December 4, 2026, the Mayor must designate a city agency to
administer the law and conduct a pay equity study of the private
workforce. - Within one year of designation, that agency must develop a
standardized, fillable reporting form and establish submission
procedures. - Employer reporting deadlines must begin within 12 months after
the standardized form is finalized and published and will recur
annually thereafter.
Pay data will be submitted anonymously through the standardized
form. However, employers must also separately submit a signed
certification identifying the employer and attesting to the
accuracy of the reported information. The designated agency is
granted broad authority to modify reporting requirements over time,
including the ability to introduce reporting options that account
for different gender identities.
Enforcement and Penalties
The designated agency is required to publish annually a list of
employers that fail to comply with the reporting requirements.
Before an employer may be publicly identified, however, the agency
must issue a written warning and provide a 30-day cure period.
If an employer fails to comply within that period, the agency
may impose a civil penalty of $1,000. Subsequent violations may
result in penalties of up to $5,000.
Key Takeaways for Employers
Although reporting obligations will not take effect until the
agency finalizes the reporting framework, covered employers should
evaluate their data-collection systems to ensure they are in a
position to accurately track pay, demographic and occupational
information and report same when these requirements become
effective.
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