The Pay Transparency law

Image: HALPERN & SCROM

Recently, the New York Statewide Pay Transparency law went into effect on September 17th, 2023. This law will require employers to include an accurate pay rate or salary range they believe to be precise on job ads. However, there are several issues with the Pay Transparency law. When the pay Transparency law went into effect in New York City in November 2022, few companies adjusted their job listings to include a wide pay range. In a job listing posted by Citi, they listed a wide salary range of $0-$2 million for one of their positions. Although they confirmed this was a mistake on their end, many people are left to wonder which companies are making similar adjustments to their job ads. According to an article by Wired, few companies seem to be shortsighted. Providing a precise pay range can attract more candidates. So why aren’t more employers willing to add an accurate pay rate to their job listings? According to a research that explored the effects of pay transparency, this level of transparency can “lower pay rates for the broader population of employees.” It also seems that many companies want to avoid “salary wars” because it can create competition. 

Overall, there are a million reasons why companies are hesitant to be this transparent. However, as a Staffing and Recruiting firm, we support the Pay Transparency law because we believe in building a level of trust with our clients. We also hope that being transparent about salaries can enhance employment opportunities for everyone.

Sources:

Pay Transparency Is Sweeping Across the US | WIRED

4 in 5 workers say they’re unlikely to apply for a job without salary range | HR Dive

Research: The Complicated Effects of Pay Transparency

Image Credit: Westchester County Pay Transparency Law