Studies show that women and minorities request (and therefore receive) lower salaries than similarly qualified white men. In an effort to eliminate this pay discrimination, New York City and surrounding locales have passed pay transparency laws requiring employers to include a salary range in job postings.
New York City
Beginning November 1st, job postings in New York City will be required to include a salary range. The range must include a “good faith” minimum AND maximum salary. For example, $15/hour and up would not suffice. If the salary is non-negotiable, employers may simply advertise $15/hour.
The law covers any workplace with 4+ individuals. For an employer to be covered, it is not required that all four employees work in NYC, only that at least one employee does.
Covered employers must provide a salary range for postings about “positions that can or will be performed, in whole or in part, in New York City, whether from an office, in the field, or remotely from the employee’s home.”
The law applies to job, promotion, and transfer postings in all mediums (internet, flyers, newspaper) and extends to many groups of workers (full/part-time, contractors, domestic workers). A salary range is not required for other forms of compensation (PTO, tips, insurance).
Similar to NYC, the following locales require employers with 4+ employees to include a salary range in job, promotion, and transfer postings. These pay transparency laws do have certain distinctions from NYC’s law.
- Jersey City, NJ (April 13, 2022)
- Jersey City’s law only applies to employers with their primary place of business within Jersey City. Additionally, “job postings” only consist of “print or digital media circulating within the City.”
- Ithaca, NY (September 1, 2022)
- Ithaca’s law appears less far-reaching than NYC’s. An FAQ stipulates that Ithaca’s transparency law applies to positions “for which the standard work location will be in the City of Ithaca.”
- Westchester County, NY (November 6, 2022)
- Similar to NYC’s pay transparency law, salary range must be included in any job posting that “can or will be performed, in whole or in part, in Westchester County.” Westchester’s law provides a specific carveout for “Help Wanted” signs; these do not need to include a salary range.
StraightforWARD Legal Advice:
There are many reasons why employers nationwide should provide salary ranges, regardless of whether they believe they’re required to under law:
- NYC’s law is wide-reaching and employers will lose a large talent pool if they exclude remote workers from the city.
- Salary range laws exist in over 10 states and show no sign of slowing (a New York State bill is awaiting Governor Hochul’s signature).
- 66% of job applicants expect to see a salary range in job postings.
- It’s the right thing to do.