New York City job-seekers are about to get a big advantage.
The city’s Wage Transparency Law will go into effect on Nov. 1, making it mandatory for NYC employers to disclose the minimum and maximum pay in all job listings. According to the CNBC, the law will apply to businesses with four or more workers, including owners and independent contractors. Furthermore, not every employee needs to reside in NYC; if the business has just one NYC-based worker, it will be required to share the maximum and minimum salary/hourly wage for each role. This will also apply to a business’ internal hirings, such as promotions or department transfers.
If a company does not comply with the law, it will be given a warning and 30 days to correct the violation. If they fail to make the correction, the employer could face up to $250,000 in fines.
According to data provided by Monster, about 98 percent of workers support salary transparency, and agree that pay ranges should be included on job listings. Experts say the additional information could save job-seekers a considerable amount of time and energy during the hunts; as some qualified candidates may decide to skip the application process if they aren’t satisfied with the advertised pay. Additionally, if a company finds it difficult to fill a position with a certain salary range, they may have to return to the drawing board and make the pay more competitive.
Mariann Madden, the director of work and rewards at consulting firm WTW, points out that NYC is following in the footsteps of Colorado, which implemented a salary transparency law in early 2021. California and Washington are expected to do the same in 2023.
“We expect the recent wave of pay transparency legislation to continue,” Madden said, adding “regulatory requirements are only one factor in the expected increase in disclosures and communication about pay. “Job seekers and current employees want to know and understand that they are treated fairly and are provided with equal opportunities to thrive and grow within the organization.”
Sign up for the Complex Newsletter for breaking news, events, and unique stories.