Attention NYC Employers: Last week, pay data reporting and pay equity audit mandates went into effect in New York City following the City Council’s override of Mayor Adams’ veto of the legislation.

Here is what you need to know:

Pay Data Reporting

Employers with 200 or more employees in New York City will be required to submit annually to the city a pay report that includes information that was required by the EEOC in the EEO-1 component 2 for reporting years 2017 and 2018. Such information includes W-2 wage information and total hours worked by race, ethnicity and sex within 12 specified pay bands (though these requirements may be modified by the agency designated to enforce the law). It is not entirely clear when employers will begin to be subject to these requirements, as a few things need to happen:

  1. The mayor must designate an agency to conduct a pay equity study of the private workforce, which includes creating and executing a system to collect required information from employers. This must occur no later than December 4, 2026.
  2. No later than one year after the designation of the agency, the agency must develop a standardized fillable form for employers to submit their reports.
  3. No later than one year after step 2 above, employers will be required to submit their reports.

Pay Equity Audit

No later than one year after employers’ reporting obligations begin, and each year thereafter, the designated agency, in collaboration with other city agencies and the commission on gender equity, must conduct a pay equity study evaluating whether there are disparities in compensation among employers based on gender and race or ethnicity, and if so, identifying industries where disparities may be prevalent and any trends in occupational segregation. No later than 6 months after the study, specific findings must be delivered to the Mayor and Speaker of the City Council, which include recommendations regarding employer actions for addressing any disparities found, with such recommendations being made public. Data contained in employers’ pay reports in the aggregate will also be published, but in a manner than does not reveal employer or employee identifying information.

Next Steps

Employers should monitor the City’s actions to determine when their reporting obligations will take effect. It is also expected that before reporting obligations begin and as systems are put in place, that there will be clarifying guidance and/or regulations on employers’ reporting obligations.

You can view the bills here: The New York City Council – File #: Int 0982-2024 and The New York City Council – File #: Int 0984-2024