In a significant step towards addressing pay inequality, New York has implemented a groundbreaking pay transparency law that requires employers to disclose pay rates in job advertisements. This move, aimed at promoting equal pay for equal work, represents a major milestone in the ongoing battle for pay equality.
As of September 17, 2023, all employers in New York with at least four workers are obligated to provide salary ranges for any job they advertise, whether to the public or internally to employees seeking promotions or transfers. The law seeks to eliminate wage disparities based on factors such as age, gender, race, or other non-skill-related criteria. Its proponents believe that pay transparency will empower workers and help underpaid employees realize they are earning less than their counterparts in similar roles.
Similar legislation has already been in effect in New York City since 2022, and now, the entire state joins a select group of regions, including California and Colorado, with such laws in place. The trend towards greater pay transparency is reflective of a growing demand among workers to have a clear understanding of the salary ranges associated with specific job roles.
Da Hae Kim, a state policy senior counsel at the National Women’s Law Center, emphasized the importance of this legislation, saying, “There is a trend, not just in legislatures but among workers, to know how much they can expect going into a job. There’s a demand from workers to know of the pay range.”
One notable aspect of this law is that it extends to remote employees who work outside of New York but report to a supervisor, office, or worksite based in the state. However, government agencies and temporary help firms are exempt from this requirement.
While pay transparency advocates hail this law as a significant victory for labor rights, some employers and industry representatives have expressed concerns about compliance. Frank Kerbein, director of human resources at the New York Business Council, voiced his apprehension, particularly for small businesses, stating that many are unaware of the law’s specifics, leading to unintentional noncompliance.
To address these challenges, experts recommend that employers carefully examine the pay ranges for their current employees when determining salary ranges for new job listings. This proactive approach can help businesses avoid unintended violations of the law.
State Senator Jessica Ramos, a Democrat representing parts of Queens, hailed the law as a win for labor rights groups, particularly for young people entering the workforce. She believes it will provide them with a better understanding of how their work is valued and contribute to a more equitable job market.
As New York’s pay transparency law takes effect, it stands as a testament to the state’s commitment to achieving equal pay for equal work. By providing workers with essential information about salary ranges, it aims to level the playing field and ensure that all employees are fairly compensated for their contributions.
