pay-transparency-audits-in-nyc:-what-employers-should-expect-in-2026

Pay Transparency Audits in NYC: What Employers Should Expect in 2026

Since NYC began requiring salary ranges in job postings, regulators have monitored employer compliance more closely each year. In 2026, the Department of Consumer and Worker Protection and the NYC Commission on Human Rights may increase audits, issue more fines, and scrutinize inconsistencies between posted ranges and actual compensation practices. This blog explains what NYC employers should anticipate and how employees can understand their rights under these expanding requirements.

Why Pay Transparency Matters in NYC

New York City’s pay transparency law aims to reduce wage gaps and ensure that workers have accurate information before applying for a job. Employers must include a good-faith salary range in any posting that could be performed, at least in part, within New York City.

The law applies to:

  • Full-time employees
  • Part-time employees
  • Remote or hybrid workers
  • Independent contractors
  • Interns and apprentices

In recent years, regulators have observed wide variations between what companies post and what they pay, especially for remote roles. That trend has prompted closer examination of employer practices.

What Will Pay Transparency Audits Focus on in 2026?

1. Accuracy of Posted Salary Ranges

Audits will closely examine whether a stated range reflects the actual compensation an employer intends to offer. Ranges that are extremely broad or inconsistent with current employees’ pay are more likely to draw attention.

2. Internal Pay Equity

Regulators are expected to compare salary postings with internal pay structures. If workers performing similar roles earn significantly less than the posted range, employers may face questions about wage gaps or discriminatory practices.

3. Remote and Multi-State Postings

Employers that hire nationwide must make sure their job listings comply with NYC rules if an NYC resident can perform the job. Audits will likely focus on remote roles that exclude salary information on national job boards.

4. Documentation of Good-Faith Estimates

Companies must show how they determined a salary range, including:

  • Market data
  • Internal compensation policies
  • Budget approvals
  • Past pay practices for similar roles

Good-faith estimates must be supported by evidence.

5. Complaint Patterns

Regulators often investigate employers who receive multiple employee or applicant complaints. These may relate to misleading salary information, retaliation for raising concerns, or disparities between posted pay and take-home compensation.

Common Compliance Issues Employers Faced in 2025

Several recurring problems in 2025 will guide how audits proceed in 2026. These include:

  • Posting ranges that are too wide to be considered “good faith”
  • Failing to update ranges after promotions or role changes
  • Leaving ranges off postings for independent contractors
  • Using placeholder numbers or outdated salary data
  • Offering compensation that differs significantly from posted ranges

These mistakes can lead to fines and discrimination claims, especially when disparities impact specific protected groups.

What Employees Should Know About Pay Transparency

Pay transparency benefits applicants and current employees by offering insight into compensation fairness. Workers should understand that:

  • Employers must post salary ranges in good faith.
  • They cannot retaliate against applicants or employees who ask about pay practices.
  • Pay information in postings can be used as evidence in wage discrimination or equal pay claims.
  • Internal disparities may signal discrimination based on gender, race, national origin, or another protected category.

Employees who suspect they are underpaid compared to posted ranges have the right to file a complaint

How Employers Can Prepare for 2026 Audits

1. Conduct Internal Pay Equity Reviews

Employers should compare salaries across roles, departments, and demographics to identify disparities before regulators do.

2. Update Job Descriptions and Compensation Ranges

Job duties often evolve. Outdated descriptions can create conflicts between posted ranges and actual responsibilities.

3. Train HR and Hiring Teams

Everyone involved in posting jobs should understand NYC’s pay transparency laws to avoid posting errors that trigger investigations.

4. Maintain Clear Documentation

Records of how employers set salary ranges can demonstrate good-faith compliance if audited.

5. Consult Legal Counsel

Lawyers can review job postings, analyze compensation data, and help employers avoid accidental violations.

Talk to a New York City Employment Attorney About Pay Transparency Issues

Pay transparency audits will become more rigorous in 2026, and both employers and employees must understand what the law requires. If you have questions about salary ranges, job postings, or potential pay disparities, contact Lipsky Lowe for a confidential consultation. Our attorneys can explain your rights and help you take the following steps.

About the Author

Douglas Lipsky is a co-founding partner of Lipsky Lowe LLP. He has extensive experience in all areas of employment law, including discrimination, sexual harassment, hostile work environment, retaliation, wrongful discharge, breach of contract, unpaid overtime, and unpaid tips. He also represents clients in complex wage and hour claims, including collective actions under the federal Fair Labor Standards Act and class actions under the laws of many different states. If you have questions about this article, contact Douglas today.