NEW YORK — Implementation of New York City’s Pay Disclosure Act November 1 was something of a disaster: For the first few days, New Yorkers sued billboard companies payment of $2 milliondeleting posts and advertising six-figure gangs that tested the law’s requirement to post”salary ranges in good faith“.
Starting November 1st the 46% of all job offers from the Municipality of New York included salary ranges, according to data from tens of thousands of job postings on Glassdoor, the job search platform.
Now, several weeks later, more employers are listing their salary ranges, though disclosure is far from universal: 60% of job postings in New York City have employer-provided salaries as of Nov. 12. , according to Glassdoor.
Non-compliant businesses reported to city law enforcement have 30 days to correct their messages, or they could be fined up to $250,000 for the violation or taken to court.
Who is complying with the new salary range law?
Businesses in some industries are better than others. Unsurprisingly, industries that have historically advertised wages have the highest percentage of job postings with employer-provided wages, as of mid-November:
- Government and Public Administration: 69% of advertisements pay.
- Nonprofits and NGOs: 68% of the classifieds list pays.
- Human Resources and Staffing: 67% of listings pay.
- Transportation and Logistics: 63% of listings pay.
- (tie) Media & Communications: 61% of paid advertising.
- (tie) Restaurants and food services: 61% of listings pay.
Companies that are willing to do it communicate the advance payment understand that they can reduce theirs recruitment time, especially in a tight labor market. It can also be a boost to your brand reputation. Jobs that list salaries generally get more applications than those that don’t, says Christian Sutherland-Wong, CEO of Glassdoor.
Los workers overwhelmingly favor itBecome pay transparency: Encourage them to apply for jobs and improve the hiring experience. “It removes the burden of feeling like there has to be a long, difficult negotiation at the end,” says Sutherland-Wong. When candidates get to the offer stage, “people will know you’re transparent and you won’t belittle them. Employees appreciate knowing where they are and knowing they are being paid fairly.”
Meanwhile, professional services employers are the slowest to add salary ranges to their vacancies as of mid-November:
- Pharmaceutical and Biotech: Pays 29% of ads.
- IT: 37% of advertisements pay.
- Financial Services: 37% of the listings pay.
- Production: 41% of the ad list pays.
- Aerospace & Defense: 43% of advertisements pay
Historically, these professions have been less transparent about payroll, says Sutherland-Wong, so their slow adoption to comply with the law isn’t entirely unexpected.
Salary ranges have widened since the New York law went into effect
While disclosure is now a legal requirement, many companies continue to be quite vague about their ranges. In October, before the law was enacted, employers who opted to provide pay ranges in job postings had an average pay range of $10,000. In November, that median salary range was expanded to $20,000.
Before the law required it, jobs with greater pay transparency tended to focus on low-wage hourly jobs, such as in the food service industry, says Sutherland-Wong.
Now that it’s required for all jobs, high-paying positions with higher minimum and maximum salaries could lift the mid-range overall. Still, adds Sutherland-Wong, many companies are likely to offer broad ranges to keep things flexible for themselves while still technically complying with the law.
And while six-figure salary ranges have drawn the ire of the Internet, fewer than 3 percent of daily active jobs in November have a salary range greater than $100,000, according to Glassdoor.
While you read like that of New York in general they got off to a good start, “there’s still a lot of work to be done here and it’s still early days,” adds Sutherland-Wong. “It will take some time for the companies to get back together.”
New York law is spreading to neighboring states
As experts predicted, New York City law is putting pressure on employers elsewhere to implement their own pay transparency policies.
As of October, 40% of jobs in New Jersey, Connecticut and New York State (excluding New York City) list salary ranges; in November this share rose to 46%.
Experts say it’s only a matter of time before the requirements hit the rest of the US: Colorado instituted its own payroll disclosure law in January 2021, and similar laws will hit California, Washington and Rhode Island by 2023.
Glassdoor, which began listing salary ranges in job postings in November 2020, says the practice holds them accountable for eliminating salary bias among underrepresented groups, especially by taking a closer look at gender and racial pay gaps.
That’s not to say companies that don’t disclose salary ranges don’t also conduct these audits, but a formal, public practice holds companies accountable for analyzing and resolving wage disparities, “otherwise employees will do it themselves,” he says. Sutherland-Wong. .
“Companies that lean toward transparency generally do better when it comes to paying fairly, and the ones that lean toward transparency are the ones you should watch out for. People tend to do bad things in dark corners that they wouldn’t do in the light of day.”
is Item It was originally published in English by Jennifer Liu for our sister chain CNBC.com. For more from CNBC log in here.
