New York State Implements Pay Transparency Law to Address Inequity in Job Postings
Beginning Sunday, employers across New York State are required to list the salary or salary range for job postings, thanks to the newly implemented Pay Transparency Law. The law, signed by Governor Kathy Hochul in December 2022, aims to empower job seekers while addressing pay inequity.
Advocates have applauded the law for providing more transparency in job postings and pay. Additionally, the law requires employers to maintain records of all postings to ensure compliance.
According to Jared Cook, an attorney with Tully Rinckey, the new law will benefit both job applicants and employers. It provides applicants with a clear understanding of the compensation they can expect, while also helping employers who offer competitive wages.
Cook emphasized the importance of employers making a good faith effort when specifying the pay range in job postings. Merely providing a broad salary bracket may not suffice and could mislead potential candidates.
The Pay Transparency Law was enacted to address issues that have long plagued job seekers. Many individuals have felt deceived by applications or faced lower salaries than what was advertised after going through rounds of interviews. Moreover, studies still reveal disparities in pay based on gender and race, even in 2023.
Cook highlighted that pay discrepancies often arise due to unconscious biases, making it difficult for individuals to determine if they are being paid less than their colleagues performing the same job.
However, not everyone is on board with the new law. The Rochester Chamber of Commerce expressed skepticism as to whether the law will effectively address pay inequity and discrimination. While the law may initiate conversations about workplace equality, its impact remains to be seen.
Employers will face challenges explaining why new hires may receive higher pay than long-term employees. Morale may also be affected, as employers strive to demonstrate that all employees are valued, regardless of their pay rate.
The implementation of the Pay Transparency Law coincides with a proposal by the U.S. Department of Labor to increase the federal salary threshold for exempt employees. This suggests that employers will face ongoing difficulties in addressing pay compression and meeting changing labor regulations.
As the law takes effect, both employers and employees anticipate the impact it will have on pay transparency and workplace dynamics. Time will tell if the law succeeds in fostering a more equitable and inclusive work environment.