- [Narrator] If you're looking for a job in New York
starting May 15th
you'll be able to see what positions will pay
on a whole lot more job postings.
This is thanks to a new law that passed in January
requiring nearly all New York City companies to
disclose expected salary ranges for all open positions.
- This is a big deal because of the size
of New York city's economy.
Many of the biggest companies have operations in New York.
- [Narrator] Pay transparency exists
to some degree in several places
in the US, but New York City would join only Colorado
in requiring this information be included in job postings.
- I think it'll make a difference
in a really positive way for job seekers
especially women and black people and people of color
- But some businesses have voiced concern
that it will cause more harm than good.
So what does this new law mean for job seekers
employees and companies?
How will it impact the city's labor market?
And will it be an effective way to fight pay inequities?
New York City's pay transparency law
was introduced in 2018
but no action was taken until last December.
- It comes at a time when the labor market is really tight.
And when the power dynamics have already sort
of shifted to employees.
- [Narrator] The law covers nearly
every employer hiring in the city
except those with fewer than four employees.
And if companies don't comply
they could be fined up to $250,000
or face other civil penalties.
- New York City officials have told me
that basically at first they plan to
not focus as much on fines
but on just making sure
that people comply and understand this rule.
- [Narrator] While the commission
on human rights will do some investigating on its own
most of the time it will act following a complaint.
This mandate joins another law
in New York that passed in 2017
which banned private employers from pressing job seekers
to disclose their salary history.
The first group that will benefit
from this new law, job seekers.
By seeing pay ranges
they can be more prepared going into salary negotiations
and only apply for jobs that pay their desired salary.
This rule will also enable existing employees
to compare their pay with those stated in open roles.
- Many employment lawyers and others
expect existing employees to go to their bosses
and say, Hey, I see this salary range is posted
why am I not at the high end of that range.
- [Narrator] But this law could be particularly significant
for women and people of color
two groups who have been historically underpaid.
According to the US census bureaus'
most recent national data
women in the US make 30% less than men.
And that gap is wider for most women of color.
Paris Chandler is the Founder and CEO
of Black Tech Pipeline
an organization that helps black technologists
get jobs at companies across the US.
She says pay transparency will help prevent
candidates from underselling themselves
in the to interview process.
- When you don't know what to ask for
it brings on a lot a lot of stress
anxiety and imposter syndrome
because you don't know what to value yourself at.
Especially as someone who's used to being underserved.
- One group that's pushing back against this law
is the partnership for New York City
a prominent business group that represents
over 300 major companies in New York City.
It intends to push for the city to delay implementation
of the law to the end of the year.
Catherine Wylde, the group's president and CEO
says the law would be difficult to implement
especially with so many remote jobs.
And that in some industries, salary is only one component
of an employee's total compensation.
- Often, like in the financial services industry
it's a small component of total compensation
but you don't really know what the compensation
is going to be like for performance bonuses
or in the case of the tech startup sector
the equity opportunities.
- [Narrator] And in a competitive labor market
like New York City
she says this could put employers at a disadvantage.
- The idea that somehow you're putting out there
the maximum you will pay
cuts you off from talent
and gives your competitors an opportunity to outbid you.
- She added that the law would negatively impact hospitals
and small businesses
which are both experiencing staffing shortages.
New York City's mandate comes about a year
after Colorado's pay transparency law went into effect.
And there, companies have handled the law in different ways.
Some got around the disclosure requirements
by specifying in their listings
that the work can't be done in the state.
Others posted salaries with ranges of $100,000 or more.
- But overall, the results from Colorado
have been pretty positive
according to job seekers and others.
Most jobs now include salary information on them.
The state has done a lot to sort of educate companies
on how to comply with this.
And as a result, you can then look
at postings from big companies like Amazon and others
and see what a software engineering role
in Colorado might pay for example
what a pharmacist at Walmart might pay in Colorado.
It gives people a sense for sort of what the jobs pay there
even if the pay might be different in someone else's region.
- [Narrator] A Colorado trade group sought an injunction
against the rule in 2021.
Though a federal judge denied that request
employment lawyers say they expect similar lawsuits
against New York's measure
before it goes into effect in May.
Over the next few months
experts say more details about the law
are expected to come out.
Like how companies will be expected to comply
and what the enforcement mechanism might look like.
- I think many people are watching New York City's law
just because it could have ripple effects
for other economies around the country.
Other cities and states may follow New York City here
and put in place similar legislation.