Corporate America Watches as New York’s Salary Transparency Begins Tomorrow

Corporate America Watches as New York’s Salary Transparency Begins Tomorrow

Slowly but surely, the way we view labour is changing across the world. From the world’s largest four-day work week experiment to the growing number of unionization attempts occurring at major corporations, our world’s workforce is demanding to be seen and heard. On November 1, a new law will finally go into effect in New York City that requires employers to post salary information on job listings.

The law, titled Salary Transparency in Job Advertisements, requires employers with four or more employees to publish a “good faith salary range” for any open positions, promotion, or transfer opportunity as described in a May release from the New York City Commission on Human Rights. For a company to be covered by the law, at least one employee must work in New York City. All methods of advertising for a position must include salary information, like the commonly used digital platforms such as LinkedIn and Google Jobs. The Commission defines a salary as an hourly wage or annual rate of pay.

The Wall Street Journal says that some large New York City employers like JP Morgan, American Express, Citigroup, and Macy’s have already begun disclosing salary information ahead of Tuesday’s deadline. The Journal further says that companies have been analysing their own salary habits as well preparing managers to have difficult — and potentially contentious — conversations with employees regarding salaries before the law is active.

Salary transparency has a multitude of benefits. As applicants navigate highly competitive job markets, published salary information can help them avoid wasting their time with positions below their desired compensation while simultaneously helping them understand what their skills and position are worth. Likewise, as The New York Times argues, salary transparency has the potential to narrow the gender wage gap. In the federal government, where salary transparency is standard, women earn 93% of mens’ salaries compared to the 84% women generally receive compared to men in private industry.

The Salary Transparency in Job Advertisements law was first enacted back in January of this year with an initial deadline set for May 15, 2022 for when salary information was required to be posted. The law (obviously) drew criticism from corporations and companies, who pushed back on the law under the guise that it would screw with their plans for diversity. On April 28, the city council approved an addendum that would push the deadline back to November 1, and the final law was signed by New York City Mayor Eric Adams on May 12. New York state could soon follow suit.

The salary transparency law has the potential to truly change the way applicants view companies and positions within them, while forcing the hands of those companies to provide appropriate pay. In an ideal world, less people would apply to a position with less pay, encouraging employers to raise the salary. While the results of this law are speculative for now, the effects should hopefully begin to change the market sooner rather than later.

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