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Large employers should begin preparing to report annual pay data regarding their employees. Specifically, New York City employers with 200 or more employees in New York City must submit annual pay data reports to the City under the new law, Int. No. 982-A. Notably, this ordinance was passed by the City Council earlier this year but was vetoed by Mayor Adams. On December 4, 2025, the City Council overrode Mayor Adams' veto, thereby passing Int. No. 982-A into law.
Requirements and Timing
Under the law, employers must submit the information requested by the Equal Employment Opportunity Commission ("EEOC") "in the EEO-1 component 2 reporting requirements for reporting years 2017 and 2018," as well as potentially submit data related to gender identity.1 The EEO-1 component 2 requirements for 2017 and 2018 include information about race and sex for employees with salaries in the following ranges: (1) $19.2k and under; (2) $19.2-24.4k; (3) $24.4-30.6k; (4) $30.6-38.9k; (5) $39-49.9k; (6) $49.9-62.9k; (7) $62.9-80k; (8) $80-101.9k; (9) $101.9-128.9k; (10) $128.9-163.7k; (11) $163.8-207.9k; and (12) $208k and over.2
Although the law took effect last week, employers may not need to submit the required data to the City for roughly three years. Specifically, the law explains:
- By one year after the law's effective date—i.e., December 4, 2026—the mayor must select an agency that will be responsible for managing the pay data submitted by employers;
- Within one year from the date the agency is selected—i.e., before December 4, 2027—the agency designated by the mayor must create a standardized fillable form through which covered employers can submit pay data (anonymously, if they choose to do so); and
- No later than one year after the agency creates the standardized fillable form—i.e., on or before December 4, 2028—employers must begin submitting their annual pay reports.3Even though employers will be able to submit pay data on an anonymous basis, each employer must also submit a "signed statement by an authorized agent . . . confirming the submission of the pay report and accuracy of the information contained in such report."4 Thus, anonymity cannot be guaranteed.
Penalties for Noncompliance
Employers who fail to comply with Int. No. 982-A will receive a written warning. If an employer does not cure the violation within 30 days and submit documentation establishing compliance with the law, the employer will be subject to a civil penalty of $1,000.5 Subsequent violations of the law will result in a $5,000 civil penalty to the employer.6
Practical Guidance
To the extent they do not already do so, employers with 200 or more employees working in New York City should begin keeping a detailed employee census. The census should include demographic and salary information for all inpiduals employed by the company (whether on a full-time, part-time, or temporary basis), and account for each inpidual employed by the company at any point during the year. Employers may also want to consider who within their organization is best suited to serve as the company's authorized agent for purposes of submitting the pay report to the mayor's designated agency. This person must be familiar enough with the data in the report to be able to ensure its accuracy.
Footnotes
1. Int. No. 982-A(b)(3).
2. https://www.eeoc.gov/newsroom/eeoc-releases-data-dashboard-2017-2018-pay-data-collection
3. See Int. No. 982-A(b)(1)-(3).
4. Int. No. 982-A(c).
5. Int. No. 982-A(h)(1)(a).
6. Int. No. 982-A(h)(1)(b).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
