News Summary
The New York City Council has approved two critical bills aimed at promoting pay equity among large employers. These bills require businesses with over 200 employees to report pay data by race and gender, enhancing workplace transparency and accountability. Employers will need to submit detailed salary reports for 2017 and 2018, while a new designated agency will oversee the implementation and compliance efforts. The legislation represents a significant step towards aligning with similar laws in other states, addressing pay disparities based on demographics.
New York – The New York City Council has taken significant steps towards promoting pay equity by passing two bills requiring large employers to report employee pay data categorized by race and gender. The newly approved legislation, known as Int. 982A and Int. 984A, will only be enacted once the mayor designates an agency responsible for overseeing the reporting process.
To qualify under these bills, employers must have at least 200 employees, which includes full-time, part-time, and temporary workers. The measurement of employer size will be based on the highest number of employees recorded during the reporting year. The legislation specifically pertains to employees working within New York City, excluding those employed by the U.S. government or state and local government entities.
Once enacted, the designated agency will work to develop a standardized fillable form for pay reporting within a year. Employers will be required to submit pay reports that correspond to the EEO-1 Component 2 report, detailing employee salaries broken down by job title, sex, race, and ethnicity for the years 2017 and 2018. The agency has the authority to modify the EEO-1 reporting structure to incorporate additional gender identity reporting options as necessary.
Moreover, employers have the option to include explanatory remarks along with their submitted pay data. A signed statement confirming the accuracy of the reported information will be mandatory from an authorized agent, ensuring accountability. Notably, individual employee personal information will not be required in the reports, but employers must affirm their details through the signed statement.
The designated agency will be responsible for tracking compliance and must publish a list of noncompliant employers annually after providing a 30-day notice to allow them to comply. Employers failing to meet the reporting requirements will face penalties, including a written warning for the first offense, a civil penalty of $1,000 for failure to comply after the warning, and subsequent offenses carrying penalties of $5,000.
Additionally, the designated agency is tasked with conducting a pay equity study within one year of receiving the reports to assess compensation disparities influenced by gender and race/ethnicity. The findings from this study must be presented to the mayor and city council within six months of completion, identifying industries where significant disparities exist.
The aggregate pay data will be published in a manner that preserves the anonymity of both individual employers and employees. The introduction of these bills reflects New York City’s commitment to aligning with similar pay reporting laws in states such as California, Illinois, and Massachusetts.
This legislative action signifies a broader trend among municipalities to collect pay data in light of the lack of a federal pay reporting requirement. Large employers with substantial workforces in New York City will need to prepare for the new compliance obligations that these bills will impose once they take effect.
Overall, this legislative move aims to enhance transparency in pay practices and address the ongoing challenges of pay disparities across different demographics in the workplace.
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Author: STAFF HERE NEW YORK WRITER
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