Proskauer Rose LLP are most popular: <\/p>\n
\n <\/ul>\n
After the NYC Council voted to override a veto by former Mayor
\nEric Adams, New York City will soon require large employers to
\nreport pay data by employee race, ethnicity, and gender.<\/p>\n
NYC Pay Data Reporting Coverage and
As we previously reported<\/a>, while these new
First, the law requires that an agency be designated within one
Within one year of the designated agency publishing the
\n<\/ul>\n As noted above, the NYC pay report will track pay data
Component 2 pay data reporting has not been required as part of
How Pay Data Will be Compiled and Used<\/strong><\/p>\n While employers will have an option to submit the pay report
Penalties for Noncompliance<\/strong><\/p>\n Violations of the law will subject employers to civil penalties,
\n<\/ul>\n The designated agency will also publish annually on its website
Other Pay Data Reporting Laws and Pending
With the enactment of this new requirement, NYC will join a
California<\/a> has required private employers with
Illinois<\/a> began requiring private businesses
And in a related requirement, effective as of February 2025, Massachusetts<\/a> employers with 100+ employees in
Looking ahead, the New York state<\/a> legislature is currently considering a bill<\/a> that would require
\nRequirements<\/strong><\/p>\n
\nrequirement take effect immediately, covered employers\u2014i.e.,
\nemployers with 200 or more employees in New York City (including
\nfull-time, part-time and temporary employees)\u2014will have some
\nbreathing room, as the City must first implement the process for
\nthe submission of such information.<\/p>\n
\nyear of the law taking effect (i.e., by December 4, 2026), at which
\npoint the designated agency has one year to develop a standardized
\nfillable form for covered employers to submit pay reports.<\/p>\n
\nstandardized form, and annually thereafter, covered employers must
\nsubmit to the designated agency:<\/p>\n
<\/p>\n
\nwith the categories of information required by the Equal Employment
\nOpportunity Commission (EEOC) in the EEO-1 “Component 2″
\nreporting requirements for reporting years 2017 and 2018; and<\/li>\n
\n
<\/p>\n
\naccuracy of the pay report.<\/li>\n
\ninformation that private sector employers with 100 or more
\nemployees, as well as certain federal contractors\/subcontractors,
\nwere previously required to compile and submit to the EEOC as part
\nof annual EEO-1 reporting requirements for years 2017 and 2018.
\nThis information included aggregate pay and hours-worked data
\nacross 12 pay bands broken out by job category and by race,
\nethnicity, and sex.<\/p>\n
\nannual EEO-1 reporting since 2020, when collection of the 2018 data
\nclosed and the EEOC published a Federal Register notice reflecting
\nit could not seek approval to continue Component 2 reporting. As
\nsuch, the NYC law will effectively reinstate an obligation for
\nthose employers covered by the City law that has not existed for
\nseveral years. It is further noted that the designated agency would
\nbe authorized to adopt modifications for the NYC pay report, which
\ncould include (but would not be limited to) inclusion of reporting
\noptions accounting for different gender identities beyond male and
\nfemale.<\/p>\n
\nanonymously, the separate signed statement must identify the
\nemployer. Within one year after covered employers submit their pay
\nreports, and annually thereafter, the designated agency will
\nconduct a pay equity study and publish the data contained in the
\nreports in the aggregate, and in a manner that does not reveal a
\ncovered employers’ or employee’s identifying
\ninformation.<\/p>\n
\nas follows:<\/p>\n
<\/p>\n
\nwritten warning if the employer provides, within 30 days of the
\nservice of summons, documentation indicating that such violation
\nhas been cured. If the employer fails to provide such
\ndocumentation, they will be subject to a civil penalty of $1,000;
\nand<\/li>\n
\n
<\/p>\n
\nto a civil penalty of $5,000.<\/li>\n
\na list of covered employers that fail to comply with the reporting
\nrequirements.<\/p>\n
\nBills<\/strong><\/p>\n
\nsmall\u2014but potentially expanding\u2014group of jurisdictions
\nrequiring employer pay data reporting.<\/p>\n
\n100+ employees in total (and at least one employee in CA) to submit
\nannual workforce pay and demographic data reporting to he
\nCalifornia Civil Rights Department since March 2021 (with certain
\nmodifications over time). Reports are organized by establishment
\nand include breakdowns by job category, pay band, race, ethnicity,
\nand sex, along with hours worked. Employers face per-employee civil
\npenalties for non-compliance.<\/p>\n
\nwith more than 100 employees in Illinois to obtain an Equal Pay
\nRegistration Certification, with the first certificate having been
\nrequired by March 23, 2024 and continuing every two years
\nthereafter. To obtain a certificate, employers must submit certain
\ninformation to the Illinois Department of Labor, including (i) the
\nemployer’s most recently filed EEO-1 report; (ii) a list of
\nemployees separated by gender, race, and ethnicity with
\nemployee-level data including county, dates of employment, and
\ntotal wages; and (iii) a signed compliance statement meeting
\ncertain specifications.<\/p>\n
\nMA are required to annually submit to the MA state secretary copies
\nof their EEO-1 report as submitted to the EEOC. Employers covered
\nby the EEOC’s EEO-3 (covering local referral unions), EEO-4
\n(covering state and local governments), and\/or EEO-5 (covering
\npublic elementary and secondary school systems) reporting
\nrequirements are also required to submit to the MA state secretary
\ncopies of such reports on a biannual basis.<\/p>\n
\nemployers bidding on state contracts to annually submit employee
\npay data broken down by job category, gender, race, and ethnicity,
\nas well as the difference between pay averages in each category, to
\nthe New York State Comptroller.<\/p>\n