NYC Council Overrides Veto of Pay Data Collection

By Victoria Ungvary

BLOG OVERVIEW: The New York City Council overrode Mayor Eric Adam's veto of two pieces of legislation regarding annual pay data reporting by employers. Reporting could start as early as 2026.

On December 4, 2025, the New York City (NYC) Council overrode Mayor Eric Adams’ veto of two pieces of legislation relating to annual pay data collection:

• 982-A, which requires private employers with 200 or more NYC employees to submit pay data annually
• 984-A, which mandates that an annual pay equity study based on the collected pay data be conducted by a yet-to-be determined city agency.

Timeline for Implementation

While reporting could start as early as 2026, the legislation sets a phased timeline that may push the final reporting deadline to late 2028:

• By December 4, 2026, the Mayor must designate an agency to collect pay data and conduct a pay equity study of covered private employers
• Within one year of designation, the agency must design and publish a standardized data collection form
• Within one year of form publication, employers must submit their first report, and thereafter annually

Reporting Requirements

The law specifies that reporting categories must correspond to the Equal Employment Opportunity Commission’s (EEOC) EEO-1 Component 2 data collection from 2017 and 2018, though it does allow modification to include differing gender identities beyond male and female. This is similar to California’s Pay Data Report, which has undergone multiple changes since it was introduced, and has major upcoming changes taking effect in 2026 and 2027.

For multi-state employers, this creates additional complexity as similar but not identical reporting obligations across jurisdictions underscore the increasing patchwork of state requirements.

Compliance and Penalties

Non-compliant employers face both reputational and financial consequences, which include the following:

• The designated agency will publish an annual list of non-compliant employers on its website
• Employers will have at least 30 days to comply before being listed
• Civil penalties of $1,000 for the first offense, and $5,000 for subsequent offenses

Pay Equity Study

Under Int. 984-A, the designated agency will conduct a pay equity study and submit the results to the Mayor and City Council Speaker, including recommendations for employers to address disparities annually. Aggregate pay data and recommendations will be publicly released, but individual employers and employees will not be identifiable.

Notably, employers may report data anonymously, provided they also submit a signed statement attesting to its accuracy—an approach that differs from other states’ reporting requirements. This anonymous submission process, along with the presumed related challenges of enforcing the data collection, were Mayor Adams’ reasons for the veto. Additionally, the veto stated that Mayor Adams felt this would not result in the collection of reliable data, nor would the city be able to hold businesses accountable for any pay disparities found.

DCI will continue monitoring developments regarding the designated agency and reporting requirements and will share updates as they become available.