Pay transparency is hitting the mainstream, and New York City is the latest to jump on the trend.
Starting today, employers in the city will be required to include “good faith” salary ranges in job postings, promotions and transfer opportunities.
The legislation was first introduced earlier this year in an effort to address pay gaps between genders and races.
Employers of companies with four or more employees, with at least one living in the city, must post minimum and maximum salary offerings for each role, whether it’s on an internal job board, flier or platforms like LinkedIn and Indeed.
Salaries must be specific and include whether pay is annual or hourly, but the law does not require employers to share other benefits like health insurance or paid-time off.
The legislation applies to a variety of professionals, including full or part-time workers, independent contractors or any other workers that are protected by the New York City Human Rights Law.
While the law covers remote workers in the city, businesses hiring elsewhere and are headquartered in the city do not have to share pay ranges.
Companies that fail to comply with the law may be investigated by the Commission on Human Rights, which could result in fines or legal action.
“I think most HR leaders would like to be more transparent about pay, but have a hard time making that case to executives — the benefits you see with positive engagement and employee outcomes outweighs some risks,” said Tony Guadagni, senior principal of research at Gartner.
“HR leaders see this as a silver lining. For the first time, their hand is being forced with regard to pay transparency, and they’re able to get more executive buy-in on things they know to be positive on the organization as a whole.”