On December 15th, 2021, the New York City Council passed a bill that would require employers of more than 4 employees to disclose their minimum and maximum salaries as of May 15, 2022 when advertising job postings.
Shortly before this law was to go into effect, business groups in the city successfully lobbied to have the effective date postponed until November 1st, 2022.
Here we will take a look at some of the reasons this law was passed, as well as some of the ways it can affect both businesses and prospective employees:
Why was this bill passed into law?
The bill was introduced as an effort to move NYC towards pay transparency. Pay transparency aims to make the hiring process more equal for prospective employees by not withholding salary ranges for advertised jobs. The law aims to reduce hiring discrimation from the employer’s end, as well as giving applicants a clear understanding of the pay range from the beginning of the application process.
How does this affect employers?
Starting November 1st, 2022, employers will be required to disclose their salary ranges to prospective employees from the initial job posting rather than disclosing the information further down in the hiring process. Until the law takes effect, NYC employers can withhold salary information until the end of the hiring process if they choose.
What does it mean for prospective employees?
This will help to streamline the hiring process. Job applicants and employers don’t want to waste their time if they know from the beginning that they are not a good fit for the other. The law aims to make the job hunt a more level playing field for all involved.
How do you feel about employers being required to disclose salary ranges in job postings, especially if you are in New York City? We would love to hear from both employers and employees. Let’s keep the discussion on pay transparency going!
