A new law take effects in New York City today, requiring companies to include salary ranges in their job postings. The city isn’t the first jurisdiction to adopt such a law. States including Colorado, Connecticut and Nevada began requiring salary ranges be posted last year. Similar laws are scheduled to take effect in California, Rhode Island and Washington State in 2023.

With the new law in place, the hiring processes for businesses will become more transparent, but the overall goal of these efforts is to reduce pay disparity. In New York, the law applies to companies with four or more employees. They must now include a “good faith salary range” as a part of each job posting. After the first offense, businesses could face up to $250,000 in fines for a violation if it is not addressed within 30 days.

‘Changing the Dynamics’

The Wall Street Journal said such laws “are changing the dynamics of hiring and looking for a job.” Candidates approve of these rules because they help them better target their job search, the Journal said. In addition, compensation experts told the newspaper visible pay ranges can help workers determine whether their current compensation is in line with the market.

Managers like the approach, t00, the Journal said. Many believe posting salary information saves them from the awkwardness that bubbles up when they deal with candidates whose pay expectations are out of range. Meanwhile, it saves them the time it takes to interview those candidates.

U.S. News & World Report says only one-third of New York City’s employers are impacted by the law. It touches roughly 90% of the city’sworkers, according to state Labor Department statistics.

While much of the discussion around these laws has focused on the dynamics between employer and candidate, a number of experts say their genesis lies in the need to reduce pay disparities between White men and women in different ethnic groups.

In 2020, women earned 84% of what men were paid, according to the Pew Research Center. New laws could be the catalyst for more discussion about wages, and perhaps even negotiation in the case of inequity. “The intention is to chip away at pay inequity,” New York City Counselor Nantasha Williams told the Daily News.

Extended Reach

Already, the movement toward required pay disclosure is having an impact, even on organizations with employees outside of New York. According to Fortune.  American Express has begun to post salary ranges on job listings across the U.S., even where it’s not required by law.”

“Although the law is only applicable within New York City, we have extended this same level of transparency across the U.S. to ensure a consistent experience for job seekers interested in finding their place on our team,” the company told Fortune in a statement. Meanwhile, a survey by Willis Towers Watson found that most companies are at least considering pay disclosure, Fortune said.

By Mark Feffer

Mark Feffer is executive editor of RecruitingDaily and the HCM Technology Report. He’s written for TechTarget, HR Magazine, SHRM, Dice Insights, TLNT.com and TalentCulture, as well as Dow Jones, Bloomberg and Staffing Industry Analysts. He likes schnauzers, sailing and Kentucky-distilled beverages.


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