The New York City Council has approved a bill that would require NYC employers with four or more employees to include salary ranges in job postings and/or advertisements. The bill is currently before new Mayor Eric Adams for signing, and if enacted, will go into effect in April.
Understanding the new law and what it does and does not cover is extremely important for HR compliance. Failing to comply could result in penalties and fines, so business leaders must know what is required.
What does the law cover?
Currently, NYC employers can withhold pay information until the hiring process is complete. Advocates of this bill argue that this forces applicant and potential employees into “unequal negotiations throughout the hiring process without the critical piece of knowledge around salary.”
This law makes an employer’s failure to provide the minimum and maximum salary range an unlawful discriminatory practice under the New York City Human Rights Law. It also allows the city’s Commission on Human Rights to issue rules and regulations to implement, enforce, and further clarify the law’s scope, including whether this applies to all job postings advertised in NYC, or just those jobs to be performed within its borders.
How should employers prepare?
New York City employers should first determine if their company is covered under the law. Then, review the salaries of current positions and decide whether to make any changes to those ranges to attract new talent or retain existing employees. Additionally, employers should ensure their pay practices are equitable across all demographic categories, including race and gender.
Next, create a communication plan and notify your employees about what they should expect. Employers should be ready to address any questions or potential hostility with pay transparency. For example, disclosing wages could spark jealousy among employees, while other people may not be comfortable having their salary out in the open. It’s important now more than ever to create a streamlined method of communication with a clear message of balancing transparency and privacy. Employers and business leaders should also train anyone involved in the hiring process to understand the law fully.
In today’s business world, HR is more complex than ever, and staying compliant is a must for every organization–regardless of how many changes continue to take place. Be sure to work with a broker who can help your company stay compliant and avoid penalties that can be associated.
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