NYC pushes back pay transparency law to the fall
Job listings could get much more interesting in New York City this fall. Starting Nov. 1, employers will be required to post the maximum and minimum salary for a role, so you can actually know how much a job pays before you take that interview.
Why it matters: This is quickly becoming a thing. Salary transparency is believed to be a way to diminish unfair gender and racial pay disparities, and more states and cities are doing it.
- Colorado's law went into effect last year, and Washington State just passed its own legislation. Around a dozen more states are mulling laws.
- But NYC is a highly competitive labor market, so what happens there will be influential.
The intrigue: New York's law was supposed to go into effect this month, but late last week, the date was pushed back after businesses objected.
What they're saying: Business groups had argued that this law couldn't come at a worse time, when the competition for workers is hot and they want maximum flexibility on pay. Plus, they said it would put small businesses that pay less at a disadvantage.
Advocates for equal pay argued that employers still have a lot of flexibility to post high maximums and low minimums.
- "This is doable and desirable for employers," said Andrea Johnson, a director at the National Women's Law Center.
People want to know these numbers: Salary range data was ranked the most important piece of the job description, according to recent LinkedIn study.
Zoom out: In industries like the public sector where salaries are publicly available, gender wage gaps are more narrow.
Our thought bubble: Pay transparency in job listings gives applicants more information to negotiate pay, but to truly move the needle on the pay gap, requiring companies to report internal pay data — happening already in the UK — could be even more impactful.