Under a new law passed by the New York City Council, which will go into effect in April if not vetoed by Jan. 14, employers will be required to list the minimum and maximum starting salary for any job opportunity they advertise.
According to Forbes, the bill, which passed with a vote of 41 to 7, establishes that employers who do not list the minimum and maximum salary ranges for the positions they offer would be participating in discriminatory practices. The guideline applies to both private and public sector advertisements.
“The lack of pay transparency is discriminatory and anti-worker,” said Councilmember Helen Rosenthal. “All New Yorkers should have the right to determine if they will be able to support themselves and their family when they apply for a job. It’s time to level the playing field and restore some dignity to job-seeking New Yorkers.”
The law was written, in large part, to help close the gender pay gap. It greatly benefits a candidate who earns considerably less than what is being offered for a similar job at a competing company. But it could have some unintended consequences. A hiring manager or human resources professional may ask the applicant how much they are earning and may require proof of compensation.
Although it is not illegal to share salary information with co-workers, corporations often pressure their staff to keep quiet about it. Employees then do not know whether they are significantly underpaid or well compensated.
That is why workers believe that knowing the compensation of co-workers and those of competing companies will empower them to take the appropriate measures to remedy their salary.
– .
