NYC's Pay Transparency Law: Everything You Need to Know - theSkimm
New York City is saying, ‘show me the money.’ Starting in April, employers in the Big Apple have to include salary ranges for most job postings. Pay transparency laws have become more popular in recent years with states like California, Colorado, Connecticut, and Washington passing similar legislation. But is it all about the Benjamins?
Why States are Cashing in on Pay Transparency Laws
One big reason: it helps reduce pay inequities. Especially among groups that are routinely paid less. Think: Women and people of color. Historically, talking about pay in the workplace is like saying Voldemort's name out loud at Hogwarts. (Read: A big no-no.) And wage secrecy has allowed companies to get away with paying different employees different salaries. So by getting rid of the smoke and mirrors around pay, companies can provide a more fair working environment for everyone.
A Payscale study showed that pay transparency completely closes the gender pay gap. (Yep, you read that right.) Women who felt their organizations were transparent about pay earned between $1 and $1.01 on average for every $1 a man earned.
This type of transparency has become a big topic of conversation during the pandemic. Between the Shesession and Great Resignation, employers have seen a mass exodus of workers burned out amid COVID-19 stressors. Now, companies need all the help they can get landing and retaining workers. And being upfront about pay is a solid start — showing a commitment to honesty and equity.
What’s In New York’s Pay Transparency Law
Any company with more than four employees must disclose salary ranges for all job postings. Not following the law would be considered “unlawful discriminatory practice.” And could result in a hefty fine up to $125,000. But it’s not clear if the law will apply to New York employers hiring for remote positions.
Before the law was passed, employers were allowed to withhold pay information until the end of the hiring process. Former Councilwoman Helen Rosenthal, who sponsored the law, said it’s about time that NYC “address the cause of significant inequity in the local hiring process.” And that “every New Yorker should have the right to determine whether they will be able to support themselves and their family when they apply for a job.”
But not everyone is on board. Councilman Joe Borelli, the Republican minority leader in the council, voted against the law. And said, "this smacks as something someone who never has run a business would support, and is an unnecessary interference in a contract negotiation.”
theSkimm
It's 2022 and wage inequality is still a problem. But the pandemic has highlighted the importance of making sure people are paid equally for equal work. And now, states are enacting laws to make the conversation around salaries less taboo. As it should be.
Skimm’d by Macy Alcido, Maria McCallen, and Kamini Ramdeen-Chowdhury
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source: https://www.theskimm.com/news/how-nycs-pay-transparency-law-will-impact-women-5lKUqJOUG8bSNnavcCZ1d0
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