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One of the most frustrating things about the job hunt is not knowing what a position pays. Instead of knowing upfront and saving everyone time and effort, we are forced to go through the whole process only to find out at the end. If you’re lucky, the job falls within your required range. If not, you’re forced to negotiate or terminate your candidacy.
Finally, this rigamarole will be put to an end thanks to New York City’s new pay transparency law, which will require most employers in the city to disclose salary ranges in their job postings. It takes effect on November 1.
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Under the new law, companies with at least four employees that post a position (anywhere—online, a job fair, a bulletin board) in NYC must include a salary range. It must be the minimum to the maximum that the employer expects “in good faith” to pay.
The downside? There’s no limit on how wide the range can be and there’s nothing to stop a company from deviating from the range if the “good faith” plan changes.
According to the Associated Press, this amounts to about 1/3 of employers in NYC but roughly 90% of workers in the city, according to state Labor Department statistics.
The new law is meant to help abate racial and gender pay gaps.
If a company does not follow this new law, it may be required to pay monetary damages to affected employees, amend advertisements and postings, create or update policies, conduct training, provide notices of rights to employees or applicants, and engage in other forms of affirmative relief, according to the city.
New York State is currently considering a similar bill, which was passed by the New York State Legislature in June 2022. Governor Kathy Hochul will need to sign it before it goes into effect.