NY City Council Proposes Pay Data Reporting Law for Private Employers

By Joanna Colosimo, Fred Satterwhite

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The New York City Council has passed a bill that would require private employers to submit annual pay data reports. The bill now awaits a signature from Mayor Eric Adams.

In a move meant to bolster wage transparency and equity, the New York City (NYC) Council introduced Int. 0982-2024, a bill that would require private employers with 200 or more employees in New York City to submit annual pay data reports. If signed by New York City Mayor Eric Adams, it would require reports that include demographic and occupational information to be submitted via a standardized electronic form to a designated city agency. Reporting could start as early as 2026.

If signed by the mayor, the law would initiate a three-step process that leads up to the first required filing by covered NYC employers:

1. Within the first year after signing into law, the mayor “shall designate an agency that shall conduct a pay equity study of the private workforce, which shall include the creation and execution of a system to collect the information required under this section from covered employers.”
2. Then, the agency designated in step 1 above would have no more than one year to create a standard form for covered employers to submit their pay reports. The standard form would be based on the now-defunct EEO-1 Component 2 report that was used for reporting years 2017 and 2018, but the designated agency would be permitted to adopt modifications, including options for reporting different gender identities and providing explanatory remarks about the information submitted. The submission would require a statement of accuracy signed by an authorized agent of the covered employer.
3. Then, within one year after the designated agency publishes the official standardized form (and, annually thereafter), all covered employers will submit their pay reports. Any covered employer who fails to submit the required pay data report will be subject to a civil penalty of up to $5,000. The designated agency will annually publish a list of noncompliant covered employers on its website.

The law aims to provide the city with actionable data to monitor and address wage disparities across industries and job categories, much like EEO-1 Component 2 reporting. Based on the language in the bill, the reporting format likely will be similar to California’s Pay Data Report, but NYC’s designated agency will have the opportunity to craft its own standardized form.

Similarly, Int. 0981-2024, also currently awaiting the NY City Mayor’s signature, mandates an annual pay equity study that focuses on the private employers required to file the aforementioned data report. The study would be used to evaluate compensation for disparities based on gender, race, and ethnicity, with findings being reported to both the Mayor and the Speaker of the Council.

If passed, the law will amend the city’s administrative code to require a designated agency working in coordination with the Commission on Gender Equity to analyze the pay data submitted by covered employers. The designated agency will also publish the submitted pay data in an effort to increase transparency.

These laws would mark a significant step toward institutionalizing pay equity efforts within New York City, aligning with broader state and international trends in pay transparency legislation.

DCI will continue to monitor the bill and related requirements in New York and publish updates as needed.