In an effort to promote salary transparency, New York City has passed a law requiring employers to publish salary information to potential job seekers. The salary transparency law is intended to help level the playing field for job seekers so that they can better negotiate their salaries and benefits.
The salary transparency law has gone into effect and will apply to all employers with more than four employees. Employers will be required to post salary information for all open positions, as well as provide salary information upon request to any job seeker who requests it.
Critics of the salary transparency law argue that it could lead to discrimination against certain groups of workers, such as women and minorities. Proponents of the law argue that it will help to close the wage gap and promote fairness in the workplace.
The law, Salary Transparency In Job Advertisements, requires employers that have four or more employees to publish a “good-faith salary range” for all open positions, promotions, or transfer opportunities as defined in a May release by the New York City Commission on Human Rights. A company must have at least one employee who is based in New York City to be included under the law. Advertisements for positions must include salary information. This includes the most popular digital platforms like LinkedIn and Google Jobs. A salary is defined by the Commission as either an hourly wage or an annual rate of pay.
The salary information must be prominently displayed in the job posting. If an employer does not provide salary information in the posting, they must provide it to the job seeker upon request. The salary information must be specific to the position being advertised, and cannot be based on an employee’s salary history.
The law applies to all employers regardless of size, industry, or location. However, there are some exceptions, such as positions that are exempt from wage and hour laws, positions that are subject to a collective bargaining agreement, and positions where salary is a trade secret.
When Are Employers Required to Publish Salary in Job Postings?
The new salary transparency law goes into effect on November 1, 2022, for New York City employers.
The Wall Street Journal reports that several large New York City employers, such as JP Morgan Chase. and Citigroup, American Express, and Macy’s have begun to disclose salary information before the Tuesday deadline. The Journal article further stated that companies have been analyzing their own salary habits as well as preparing managers to have difficult and potentially contentious conversations with employees regarding salaries before the law is active.
The salary transparency law is the latest effort by the city to close the wage gap and promote fairness in the workplace. In 2016, the city passed a law prohibiting employers from asking job applicants about their salary history. The salary transparency law builds on that effort by ensuring that job seekers have access to salary information before they even begin the job application process.
Transparency in salary has many benefits. Published salary information is a great way to help applicants navigate competitive job markets. It can also save them time and help them see what their skills are worth. The New York Times also believes that salary transparency can help reduce the gender wage gap. Women in the federal government receive 93% of the salaries of men, while 84% are received by women in the private sector.
The Salary Transparency in Job Advertisements law was first enacted in January. A May 15, 2022 deadline was set for when salary information had to be posted. This law was criticized by corporations and companies who opposed it on the grounds that it would interfere with their diversity plans. The city council approved an amendment that would move the deadline to November 1.
On May 12, the final law was signed in New York by Eric Adams, the mayor of New York City.
The salary transparency law could change how applicants see companies and the positions they hold, as well as force companies to pay the right amount. In an ideal world, we would see fewer people applying for positions with lower pay and encouraging employers to increase their salaries.
Although the outcomes of this law remain speculative at the moment, they should be able to have an impact on the market sooner than expected.
What do you think of the salary transparency law? Do you think it will help to promote salary fairness in the workplace?
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