[US] NYC law will make businesses disclose salary on job ads

A New York City law coming into effect this spring will require companies to reveal salary ranges on job ads, New York Post reports.

Supporters say the measure that could help close the gender pay gap.

The law will be enforced from May 15, it applies to companies with more than four employees.

Companies that post job openings will be required to provide the minimum and maximum salaries based on a “good faith” determination at the time of the posting.

It is not yet clear how, or if, the law will be applied to companies that hire remote workers. Refusal to comply could result in fines of up to $125,000 or other civil penalties.

Supporters of the measure say that the law is necessary to shrink the pay inequality gap, however, pro-business advocates have described it as another example of government overreach.

The bill was initially approved by a 41-7 vote in the City Council on December 15, 2021. It officially became law on January 15 when Mayor Eric Adams declined to either sign it or veto it.

New York City joins other jurisdictions with similar salary disclosure statutes passed, including California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington State.

Last year, some companies - including Johnson & Johnson and commercial real estate firm CBRE Group - explicitly said they would not hire remote workers based in Colorado because they refused to abide by the state’s salary disclosure legislation.

The Partnership for New York City (PFNYC) nonprofit group - with the support of members such as JPMorgan Chase and IBM - has reportedly urged the city to delay the implementation of the law.

The group said that while it backs efforts to narrow the gender pay gap, it is concerned that the new law will give ammunition to those who claim the city is hostile to free enterprise.

“It’s just the wrong solution,” Kathryn Wylde - PFNYC's CEO - told The Wall Street Journal. “It should never have been allowed to go through.”

Joe Borelli - the New York City lawmaker representing Staten Island - told The Post, “This is one of those laws that was pushed through in the name of equity or economic justice, but in reality it won’t help either job candidates or employers.

“It’s unnecessary government overreach, especially when there are already laws and reporting requirements in place to help ensure women receive equal pay for equal work.” He said.

Helen Rosenthal - the former City Council member who sponsored the bill - told CNN the law “shines a light on pay inequity.”

“Including pay ranges in job postings allows job seekers to determine whether they will be able to support themselves and their family when they apply for a job.”

In 2021, Pew Research Center found that women had earned around 84 per cent of what men earned in 2020. According to the study, the gap has narrowed significantly from 40 years ago, when women earned around 64 per cent of what men did.

Source: New York Post

(Links and quotes via original reporting)

A New York City law coming into effect this spring will require companies to reveal salary ranges on job ads, New York Post reports.

Supporters say the measure that could help close the gender pay gap.

The law will be enforced from May 15, it applies to companies with more than four employees.

Companies that post job openings will be required to provide the minimum and maximum salaries based on a “good faith” determination at the time of the posting.

It is not yet clear how, or if, the law will be applied to companies that hire remote workers. Refusal to comply could result in fines of up to $125,000 or other civil penalties.

Supporters of the measure say that the law is necessary to shrink the pay inequality gap, however, pro-business advocates have described it as another example of government overreach.

The bill was initially approved by a 41-7 vote in the City Council on December 15, 2021. It officially became law on January 15 when Mayor Eric Adams declined to either sign it or veto it.

New York City joins other jurisdictions with similar salary disclosure statutes passed, including California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington State.

Last year, some companies - including Johnson & Johnson and commercial real estate firm CBRE Group - explicitly said they would not hire remote workers based in Colorado because they refused to abide by the state’s salary disclosure legislation.

The Partnership for New York City (PFNYC) nonprofit group - with the support of members such as JPMorgan Chase and IBM - has reportedly urged the city to delay the implementation of the law.

The group said that while it backs efforts to narrow the gender pay gap, it is concerned that the new law will give ammunition to those who claim the city is hostile to free enterprise.

“It’s just the wrong solution,” Kathryn Wylde - PFNYC's CEO - told The Wall Street Journal. “It should never have been allowed to go through.”

Joe Borelli - the New York City lawmaker representing Staten Island - told The Post, “This is one of those laws that was pushed through in the name of equity or economic justice, but in reality it won’t help either job candidates or employers.

“It’s unnecessary government overreach, especially when there are already laws and reporting requirements in place to help ensure women receive equal pay for equal work.” He said.

Helen Rosenthal - the former City Council member who sponsored the bill - told CNN the law “shines a light on pay inequity.”

“Including pay ranges in job postings allows job seekers to determine whether they will be able to support themselves and their family when they apply for a job.”

In 2021, Pew Research Center found that women had earned around 84 per cent of what men earned in 2020. According to the study, the gap has narrowed significantly from 40 years ago, when women earned around 64 per cent of what men did.

Source: New York Post

(Links and quotes via original reporting)