Update – The Effective Date for the NYC Pay Transparency law has been amended and changed from May 15th, 2022, to November 1st, 2022.
The NYC Pay Transparency law is scheduled to take effect on November 1st, 2022. Under this law, it will be mandatory to add pay ranges to all job listings for companies based in New York State.
This is following 2017’s salary history law. This law made it illegal for public and private employers of any size in New York City to inquire about an applicant’s salary history during the hiring process. This includes on applications, in interviews and even while conducting reference checks.
As a hiring manager, think of the last time you posted a job online. One of the most challenging topics to broach was probably one of the most important. What is the salary range? In the world of staffing, some recruiters like to get this conversation out of the way early, and others do not for a number of different reasons.
As a firm built upon our Applicant-Centric philosophy, we certainly see the benefits to pay transparency. We also believe that ultimately it can help employers land the right person for their open role, faster.
The NYC Transparency Law can also help you quickly identify the best match. This is because you’ll be giving full transparency (a top priority for today’s job seekers.) In addition, you’ll likely save time by avoiding the back and forth that traditionally results from the negotiation process.
Let’s explore what we know for sure from what the New York City Commission on Human Rights has shared
- The NYC pay transparency law mandates employers who advertise jobs, promotions, or transfers in New York City to include salary ranges for the position.
- This range must, in good faith, state the minimum and maximum rates for the position at the time of posting.
- This is for positions performed within the city limits.
- This new law covers employers with at least four (4) employees.
- The legislation’s goal is to reduce pay disparities affecting historically disadvantaged applicants, which follows a national trend.
- This law does not apply to temporary positions advertised by temporary staffing agencies because they already comply with the New York State Wage Theft Protection Act. However, this does include direct hire roles and internal positions at staffing agencies.
What’s still lingering?
- The NYC Pay Transparency law does not define “advertise;” it does not differentiate between internal or external job postings.
- In addition, “salary” is not defined. We will have to wait on further guidance by the New York City Commission on Human Rights as the law’s effective date approaches.
As you prepare for the upcoming NYC Pay Transparency Law, consider taking time to audit your pay scales. Also, consider revising your job posting policies regarding employee compensation to ensure compliance. In addition, employers should document their “good faith” discussions when setting pay ranges. This will help defend against claims for violations of the new law.
Another option to consider is partnering with a staffing agency to support your hiring process. One that can give you access to a diverse candidate pool and has a solid reputation for matching job seekers with the right positions for them.
