THE WHAT? Employers in New York City will be bound to disclose a pay range for every job vacancy from today under the region’s soon-to-be-enacted salary transparency law, according to a report published by The Wall Street Journal.
THE DETAILS Similar measures have been ushered in in other states, and apply to roles that could be performed remotely by those living in the city as well as positions based in the metropolis. All employers with four or more workers must publish minimum and maximum salary information for new hires as well as internal transfers and promotions.
Some employers, including iconic department store Macy’s, started to include salary bands in their advertisements in advance of the official deadline. It’s thought that some will attempt to wriggle out of the new requirement by outsourcing hiring.
THE WHY? The measure is designed to help close gender pay gaps and will no doubt provoke difficult conversations as existing employees discover that they are yet to enter the advertised range for their role. However, as bonuses, stock-based compensation and other benefits do not have to be disclosed, its likely that many will use this loophole as a workaround.