New York City Council passes pay data reporting law

As a result of a recently passed bill aimed at improving pay equity and wage transparency, large employers in New York City may soon be required to submit pay and demographic information to the city.

The bill, Int. 982-A, now goes to Mayor Eric Adams, who has 30 days to sign or veto it. If he does neither, the bill will become law without his signature.

If enacted, the bill would require private employers with 200 or more employees in New York City to submit pay, demographic and job category information to a designated city agency on an annual basis. Employers would have the option to submit the information anonymously.

When enforcement begins

Specific compliance dates are not identified in the bill, but employers likely have some time to prepare. Pay data reporting would not begin until:

• The mayor designates an agency to conduct a pay equity study of the private workforce and create a system to collect the required pay information; and
• The designated agency develops a standardized fillable form for employers to submit the required information.

A companion bill, Int. 984-A, directs the designated agency to analyze the submitted data for pay disparities based on gender, race or ethnicity, and identify the industries where these disparities are most prevalent.

Employers that fail to comply will face civil penalties of up to $1,000 for a first offense and up to $5,000 for any subsequent offense. For a first offense, employers will receive a written warning and have an opportunity to avoid penalties by providing evidence of compliance within 30 days.

California and Illinois have similar pay data reporting requirements.