Show the Dough - New York City Enacts Pay Transparency Law.
New York City has joined seven states in passing a law that requires employers to disclose the expected pay range for job openings in all advertisements, external or internal.
The NYC Transparency Law takes effect May 15 (although an amendment may push back the effective date to November 1) and provides:
It shall be an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise a job, promotion or transfer opportunity without stating the minimum and maximum salary for such position in such advertisement. In stating the minimum and maximum salary for a position, the range may extend from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion, or transfer opportunity.
The law applies to employers with employees in New York City, and covers “a written description of an available job, promotion, or transfer opportunity that is publicized to a pool of potential applicants.” The statement of the range must include both a bottom and top number (e.g., not just “$15 per hour or more” or “up to $50,000 per year”).
The sanctions are severe: an employer can be fined up to $125,000, with the penalty going up to $250,000 if the conduct is found to be willful, wanton, or malicious. Don’t mess around with this new law – contact us as needed for further details.
States with pay transparency laws (in place or taking effect soon) include California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, and Washington.
Will salary negotiations be tougher for employers going forward? Yes. But on the bright side, the negotiations will be easier for those applying for jobs – and that’s the point, to stop alleged pay discrimination against women and minorities. Rainbow.