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On December 4, 2025, the New York City Council overrode a mayoral veto to enact two new pay data reporting laws, Int. 0982-2024-A and Int. 0984-2024-A…
United States
New York
Employment and HR
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On December 4, 2025, the New York City Council overrode a
mayoral veto to enact two new pay data reporting laws, Int. 0982-2024-A and Int. 0984-2024-A, that will require large
employers to submit annual reports with pay data by race,
ethnicity, and sex, modeled after the former federal EEO-1
Component 2 reports, and provide for the city to perform annual pay
equity audits based on the information submitted.
Quick Hits
The New York City Council enacted two new pay data reporting
laws, requiring large employers to submit annual reports detailing
pay data by race, ethnicity, and sex.
The designated agency will collect demographic information
modeled after the former federal EEO-1 Component 2 reports and will
have the authority to modify reporting requirements, including
options for different gender identities.
Employers face penalties for noncompliance, including written
warnings and fines, and the designated agency will conduct annual
pay equity audits to evaluate potential pay disparities.
The City Council had initially passed the measures in October
2025, but outgoing Mayor Eric Adams vetoed the legislation on
November 7, 2025. The city council then voted to override those
vetoes, setting in motion the establishment of a pay data reporting
scheme for the city’s largest employers.
Pay Data Reporting
Int. 0982-2024-A will require private employers with more than
200 employees working in New York City to submit pay data reports
to a soon-to-be-designated city agency. The reports would include
demographic and occupational information and be submitted annually
using an electronic form.
Designated Agency
Int. 0982-2024-A establishes a new pay data reporting system. By
December 4, 2026, the mayor will designate an agency to
“conduct a pay equity study of the private workforce”
and set up a system to collect information from covered employers.
Within a year after the designation, the agency will “develop
a standardized fillable form, which may be electronic or
web-based,” to allow covered employers to submit the pay data
reports anonymously. Employers will then be required to submit the
reports within a year after the publication of the standardized
forms and do so annually thereafter.
Reporting Requirements
The pay data reports will collect current demographic
information of employees, modeled after the former federal EEO-1 Component 2 reports, which were collected
by the U.S. Equal Employment Opportunity Commission (EEOC) in 2019
for the years 2017 and 2018. Those Component 2 reports required
employers to place employees in one of twelve pay bands within
their respective EEO-1 job category and separate them by gender and
race or ethnicity. Those reports allowed employers to rely on the
total taxable wages for federal income tax purposes, as reported in
Box 1 of the W-2 tax forms for each employee.
The New York City law would allow the designated agency to make
potential modifications to the reports, “including but not
limited to inclusion of reporting options accounting for different
gender identities.” The reports must also allow covered
employers “to provide explanatory remarks regarding any of
the information contained in the report.”
Statement of Accuracy
Employers will additionally be required to submit a
“signed statement by an authorized agent” confirming
the submission of the report and attesting to the accuracy of the
information submitted.
Penalties
Covered employers that fail to submit the pay data reports will
face a written warning and be provided thirty days to comply.
Failure to comply within thirty days could result in a civil
penalty of $1,000. Subsequent violations will be subject to a civil
penalty of $5,000.
Annual Pay Equity Audits
Int 0984-2024-A provides that the designated agency will use the
information from the reports to conduct a study that evaluates
whether there are potential pay disparities based on gender and
race or ethnicity and deliver the findings within six months to the
mayor and the speaker of the city council within one year after
employers are required to submit their reports.
The designated agency will be required to publish the aggregate
information from the reports submitted by the covered employers in
a way that does not identify any particular covered employer or
covered employer’s employees.
Next Steps
With the new pay data reporting laws, New York City joins other
jurisdictions, such as California, Illinois, and Massachusetts, in the trend of establishing pay
data reporting requirements aimed at reducing pay disparities and
ensuring equal employment opportunities. It is anticipated that
states and local municipalities will continue to impose their own
reporting obligations, as the federal government has shifted its
focus away from such reporting.
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