NYC will force companies to reveal their salary range
A New York City law that will take effect this spring will require companies to reveal pay scales on job postings.
Proponents say it’s a move that could help close the gender wage gap.
The law, which will come into force from May 15, applies to companies with more than four employees.
Companies posting jobs will be required to note minimum and maximum wages based on a “good faith” determination at the time of posting.
It’s unclear how or if the law will be applied to companies that hire remote workers. Companies that refuse to comply could face fines of up to $125,000 or other civil penalties.
Proponents of the measure say the law is needed to narrow the pay inequality gap, but corporate defenders argued it was another example of the government’s overreach.
The bill was originally approved by a 41-7 vote in city council on Dec. 15. It officially became law on January 15 when Mayor Eric Adams refused to sign it or veto it.
New York City has joined other jurisdictions that have passed similar salary disclosure laws, 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 Colorado-based remote workers because they refused to comply with the law on salary disclosure.
The Partnership for the City of New York is urging the city to delay implementing the law.
The non-profit group backed by members including JPMorgan Chase and IBM said that while it supports efforts to close the gender pay gap, it fears the new law could give ammunition to those who say the city is hostile to free enterprise.
“It’s just the wrong solution,” PFNYC CEO Kathryn Wylde told The Wall Street Journal. “He should never have been allowed through.”
Joe Borelli, the New York lawmaker representing Staten Island, agrees. “This is one of those laws that was imposed in the name of fairness or economic justice, but in reality it won’t help job applicants or employers,” he said. he told The Post.
“It’s unnecessary government overkill, especially when there are already laws and reporting requirements in place to help ensure women receive equal pay for equal work.”
Helen Rosenthal, the former city council member who sponsored the bill, told CNN the law “brings a spotlight on pay inequality.”
“Including pay scales in job postings allows job seekers to determine whether they will be able to support themselves and their families when applying for a job.”
Last year, the Pew Research Center found that women earned about 84% of what men earned in 2020. The gap has narrowed significantly from 40 years ago, when women earned about $64. % of what men earned, according to the study.