How New York’s New Salary Transparency Law Affects Employment Equality

The world of work is changing. From the abundance of online opportunities available to freelancers to the fast and varied jobs that crowd the gig economy, employment has taken on many new forms in the pre-pandemic world. Finally, employment laws are catching up.

On November 1^st, 2022, a new employment law is enacted in New York City. The law, titled Salary Transparency in Job Advertisements, was passed late last year by City Council after months of delay caused by some of the wealthiest corporations in the world.  

The law requires employers of 4 or more staff to publish a salary range alongside any advertised position. Whether an inside promotion, a corporate transfer, or a new post or hire, each job advertisement must now include a ‘good faith salary range,’ either annual or per hour.   

Salaries were previously undisclosed in job advertisements for good reason. Companies like to maintain a high level of privacy over wages to retain control in hiring & negotiation situations. Many contracts have built-in salary secrecy clauses punishable by disciplinary action.

The law pertains to all forms of job advertising, including digital platforms like LinkedIn & internal communications. Failure to abide will see employers incurring civil fines of up to $3,000. Employees retain the right to complain & the law includes anti retaliation regulation.

Objections to the law are multifaceted. Opponents espouse the dearth of labour already existing in the state; others raise the issue of competitive bonus packages promised to relocate talent. Some employers say it may affect diversity although their reasoning is unclear.

This law was issued under the guidance of the Human Rights Commission to balance a company’s pay scale & promote equality, but its effects will be felt further afield. It requires companies to keep more accurate records & share all compensation associated, even commission.

The newly enacted employment law may represent the future as more states & jurisdictions follow New York’s lead to enact similar statutes. In New York State, identical legislation awaits the governor’s signature, already passed by the state legislators in June 2022.   

Balanced, equitable employment laws like these might not smash the proverbial glass ceiling for women, BIPOC & minorities in the corporate sphere. Still, they represent a step towards the kind of world where all employees are catered to, respected, AND paid equally.   

The Salary Transparency in Job Advertisements law is a positive step for employment equality. New York already boasts the shortest gender pay gap in the nation at 11c.

Laws like these can only shorten that gap further.