NYC Pay Transparency Legislation
Effective November 1, 2022, a new law will require employers in New York City to include salary ranges in all advertisements and postings for job openings, promotions, and transfer opportunities. This law was supposed to have been effective in May, but was moved to November after feedback given by New York City employers. While the new law does not define salary or how it must be expressed (annualized versus hourly), the employer is required to publish the minimum and maximum range for the position. Employers with four or more workers in New York City are covered by the law.
The primary goal of the legislation is to reduce pay inequities, particularly those that frequently impact woman and people of color. The NYC legislation follows a sweeping trend of nationwide legislation that is mandating employers to be more transparent about the salary range for each position. Some states have taken the lead to enact pay transparency laws including California, Colorado, Connecticut, Maryland, Nevada, and Washington.
While the laws and requirements vary there are two common themes associated with the legislation. First, the request and use of an applicant’s salary history is prohibited – the purpose is to protect the applicant and correct any pay inequity they may have been subject to in past or current employment. The second is to provide applicants and current employees access to a company’s salary range for a particular role or job opening. This provides transparency to the applicant so they can make a determination on whether to apply for a particular role/position.
Many employers are choosing to disclose pay ranges in their job postings, as well as for their employees, when requested, regardless of the absence of specific pay transparency legislation in their state. Their goals are to create a culture of trust, internal equity and structure, as well as to remain competitive within a highly challenging talent acquisition environment.