NYC Law to Provide Salary Transparency for Job Applicants

Starting November 1 companies must post minimum and maximum pay for open jobs

May 4, 2022

Worker shortages are showing no sign of letup, with pay one of the main reasons why employees leave companies. A new law starting this fall in New York City will give job applicants salary information about positions they are considering.

The law, which starts November 1, will require employers to post the maximum and minimum salary for open jobs, Axios reports. This will allow potential applicants to know how much a job pays before they agree to an interview. The new law was originally scheduled to go into effect this month, but it was pushed back six months following objections from businesses.

Salary transparency is not a new concept. Several states and cities already have laws requiring transparency and about a dozen more are considering it. Colorado’s law went into effect last year and Washington State recently passed legislation. New York City’s law is expected to be especially influential as the city has such a highly competitive labor market.

Proponents of salary transparency say it diminishes unfair gender and racial pay disparities. Business groups argue that the law is coming at a bad time, when competition for workers is high and employers need maximum flexibility over salaries. However, advocates for equal pay say the law still gives employers flexibility to post high maximums and low minimums.

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