New York City employers may soon see their compliance to-do list grow. The New York City Council recently approved a pair of bills to address pay disparities in the private sector by requiring certain employers to file annual pay data reports – the results of which will be used for a citywide pay equity study. If signed, the measures would take effect immediately, but as detailed below, you will still have runway before your first report is due. As the bills await Mayor Adams’ signature, buckle up and learn what is required and how to prepare for takeoff.
Int. No. 982-A (Pay Data Reporting)
Int. No. 982-A would require private employers with 200+ employees working in New York City to annually submit an electronic pay data report – to include demographic and occupational information – to a designated agency for a pay equity study.
Covered Employers
- Employers with 200+ employees performing work for compensation in New York City on a full-time, part-time, or temporary basis.
- For weekly employee count fluctuations, employer size is determined by the highest total number of employees concurrently employed at any point during the reporting year.
Agency Designation and Duties
- Within one year of the effective date, the Mayor must designate an agency to conduct a pay equity study and create a system to collect the required pay data reports.
- Within a year after the agency is designated, the agency must develop a standardized form for employers to submit pay data.
- Within one year after the standardized form is published, all covered employers will be required to submit a pay report.
Pay Data Reporting
- The information required in the pay data report will correspond with the categories required in the EEOC’s EEO-1 Component 2 reporting requirements for the 2017 and 2018 reporting years, including pay reporting by race, ethnicity, and gender.
- The bill allows the agency to adopt modifications, such as including reporting options for different gender identities.
- Employers will have the option to provide explanatory remarks regarding any information in the report.
Statement of Accuracy
- Employers will be required to separately submit a signed statement confirming the submission of the report and the accuracy of the information in the report.
- Employers who fail to comply within 30 days of notice will be published on the agency website’s annual list of noncompliant employers.
Int. No. 984-A (Pay Equity Study)
Within one year of pay data report submissions, Int. No. 984-A would require the designated agency, in coordination with other relevant agencies, to conduct an annual pay equity study based on the submitted pay data reports to:
- Evaluate whether pay disparities exist in compensation based on gender, race, or ethnicity
- Identify industries where disparities may be prevalent
- Identify trends in occupational segregation based on gender, race, or ethnicity
The agency must publish the information from the pay data reports in the aggregate, and publicly release recommendations for employers to address identified disparities.
Employer Takeaways
While the changes loom overhead now, they may land sooner than you think – the bills were passed on October 9, and Mayor Adams has 30 days thereafter to sign or veto the bills. Given the overwhelming support from the New York City Council – which may be enough to override a veto – employers should prepare by:
- Reviewing internal pay practices to ensure compliance with federal and state pay equity laws
- Conducting a pay equity audit to evaluate compensation decisions
- Identifying and addressing any potential concerns or disparities prior to reporting
If you have any questions related to the bills, or need assistance reviewing internal pay practices, please reach out to the NFC Attorney with whom you typically work or call us at 973.665.9100.