NextGen

New York City Salary Transparency Law Goes Into Effect Nov. 1

New York City will require companies to post salary ranges for vacant jobs as of Tuesday, Nov. 1, The New York Times reported.

The new law aims to correct what many claim to be an unfair advantage given to employers, and a disadvantage to certain groups based on factors such as gender or race. It was supposed to take effect in May, but was delayed due to complaints from executives and business groups that they were not consulted.

Under the law’s provisions, New York City-based companies with at least four workers must include the lowest and highest salaries for any job it posts in good faith. Only base salary ranges are included; benefits such as overtime, paid vacation and health insurance are not.

Some companies have been ahead of the new law. They include Citigroup, American Express, Amazon and Zillow.

“This initiative supports our pay equity goals and reinforces many key principles such as being more transparent as an organization and simplifying our processes,” a Citigroup spokeswoman told the Times.

Workers quoted by the Times welcomed the advantages to their careers as a result of the new law.

“I would much rather have it coming out early on so that I can know before applying or early on in the conversation that we are maybe not aligned,” said Joe Stando, an office administrator who had to turn down three job offers due to salary. “You can’t really negotiate unless they have all their cards on the table.”

Stephanie Lewin, a sales associate looking for a new job, agreed. “It definitely at least takes away one element of surprise or decision-making upfront,” she said.

“The economy and inflation has swung the pendulum toward the employee,” said Glenn Grindlinger, an employment lawyer at law firm Fox Rothschild. He added that firms in other parts of the country may not know that their remote jobs, if they can be performed in New York City, must comply with the new law.

The New York State Senate passed a similar law in June that has yet to be signed by Gov. Kathy Hochul.