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New York City will require nearly all potential employers to include salary ranges in job postings beginning May 15

New York City will require most companies to include a salary range in their job postings starting next month, as major companies including Goldman Sachs, Pfizer and JetBlue push for a delay and warn the rule would hurt negatively hiring.

The law, passed by the New York City Council in December, requires city businesses with four or more employees to post the lowest and highest salary they would pay for each position.

It exempts employees with fewer than four employees, as well as temporary employment agencies.

The disclosure is intended to address the gender pay gap and help employees know how much their work is really worth in the marketplace. In 2020, women earned 84 percent of what men did, according to an analysis by the Pew Research Center.

Businesses are rejecting the bill, calling it “burdensome” and wondering what it would mean for companies that have workers in multiple states, where similar legislation is emerging across the country. Some have also noted that they may have to start responding to current employees who earn less than advertised ranges.

Last month, city lawmakers proposed an amendment that would delay implementation until November and exclude businesses with fewer than 15 employees, up from the current four.

A law taking effect May 15 will require all New York City employers with four or more workers to include salary ranges in their job postings.

The law is intended to address the gender pay gap and other forms of pay inequality.  According to a Pew analysis, the gender pay gap has remained stable for the past 15 years.

The law is intended to address the gender pay gap and other forms of pay inequality. According to a Pew analysis, the gender pay gap has remained stable for the past 15 years.

The law, as it stands now, will go into effect on May 15 after the City Council approved it in December. Ask New York City employers to list a salary range for jobs.

“The range for the maximum and minimum salary listed would extend from the lowest salary to the highest salary that the employer believes in good faith would pay for the advertised job, promotion or transfer,” the text says.

Supporters say it would help address the gender pay gap and help workers demand their worth.

“This is one of those laws where if you’re doing the right thing, then you don’t have to worry,” state Sen. Jessica Ramos, a Democrat representing parts of Queens, told Bloomberg.

“If there are companies that are very concerned about this, well, then that’s a red flag for me.”

The law is part of a series of laws in New York City aimed at making work fairer. In 2020, a salary history ban went into effect that prevents all employees from asking about a candidate’s previous salary. It also prevents employers from getting the information from other sources.

According to a Pew analysis published last year, the gender pay gap has been stable for the past 15 years, although it has improved since the 1980s.

Women ages 25 to 34 earned 93 cents for every dollar the average man in the same age group earned. [in 2020].

“This is one of those laws where if you’re doing the right thing, then you don’t have to worry,” said state Sen. Jessica Ramos, a Democrat who represents parts of Queens.

“In 1980, women ages 25 to 34 earned 33 cents less than their male counterparts, compared to 7 cents in 2020. The estimated gender pay gap of 16 cents among all workers in 2020 was less than 36 cents in 1980”.

Pew cited factors such as motherhood, which can disrupt career paths and have a long-term effect on earnings, as well as the overrepresentation of women in lower-paying jobs. She also mentioned hard-to-measure factors like gender discrimination.

Jeff Moriarty, executive director of Bentley University’s Hoffman Center for Business Ethics, told Fast Company magazine that the New York bill is good for both employers and employees.

“If people don’t know how much others in their organization are getting paid to do the kind of work they do, they won’t have the opportunity to speak out against unfair pay disparities,” Moriarty said.

“Knowing what people are paid is good for the employees who are discriminated against, as well as for the companies themselves.”

Companies say the law is difficult to follow and onerous.

“Employers are trying to understand what this means and what their obligations are under this law,” Melissa Camire, of the law firm Fisher & Phillips LLP, told the Wall Street Journal.

She is encouraging companies to make the necessary changes to their workplaces, even if the implementation date is pushed back to November.

“May 15 is only a few weeks away, so you can’t ignore that may be the date you need to start doing this.”

The City Council presented an amendment to the law that would delay its implementation until November after pressure from business groups.  Some companies worry about how to explain to current employees why they earn less than the maximum in jobs.

The City Council presented an amendment to the law that would delay its implementation until November after pressure from business groups. Some companies worry about how to explain to current employees why they earn less than the maximum in jobs.

Jeanne Stewart, who runs an HR consulting firm, is also advising companies to change their postings from now on, recently telling one company to remove half a dozen listings and re-upload them with salary ranges.

“I’m like, ‘Delete them, and we’re not going to put them back until we have bona fide ranks,'” he said.

Hari Prasad, founder and CEO of Yosi Health, told the Journal that the new rule would be good for him, because he can now compare his salary offers with those of his competitors.

“This will make the hiring process more efficient,” he said.

Software company Workato Inc employs 850 people; 30 of them live in the New York area.

Kerry Moore, the company’s vice president of diversity and global talent, says human resources executives are likely to spend the next few weeks meeting with employment lawyers to see how to implement the new law.

Moore said the company will probably also have to explain that his salary range is only part of his compensation, not including bonuses or equity. She says her company will also have to train managers to answer questions from current employees who may be earning less than the new positions advertise.

Kathryn Wylde, executive director of the Partnership for New York City, called aspects of the law onerous.  Her group represents companies like Goldman Sachs, Morgan Stanley, Pfizer and CitiBank.

Kathryn Wylde, executive director of the Partnership for New York City, called aspects of the law onerous. Her group represents companies like Goldman Sachs, Morgan Stanley, Pfizer and CitiBank.

“There are a lot of side effects to this,” Moore told the Wall Street Journal.

One group that opposes the law and is trying to delay its implementation is the Partnership for New York City.

It counts among its clients Goldman Sachs, Pfizer, CitiBank, JetBlue, Macy’s, Morgan Stanley, PricewaterhouseCoopers or PWC, United Airlines, American Express, Bank of America, ConEdison, Deloitte, IAC, Etsy, Hearst and IBM, according to its website.

The City Council presented an amendment last month after protests from companies and business groups.

The amendment would exclude companies with fewer than 15 employees from establishing salary ranges in jobs. It would also exclude posts that don’t specify a position, as well as posts for remote jobs that can be done out of town, according to Forbes.

The proposed amendment is a sign that “Council leadership is willing to listen to employer concerns and reverse provisions of the Pay Transparency Act that made compliance particularly burdensome,” said Kathryn Wylde, executive director of the Partnership. for New York City.

PowHer New York, an organization that advocates for economic equality, says the proposal is the result of “business pressure.”

‘After hailing the New York City Pay Range Law as the critical next step in the fight to close the racial and gender pay gap, the New York City Council is now considering INT. 134 that “modifies the law’s intent to provide equal pay for women of color and other minorities,” PowHer President Beverly Neufeld said in a statement.

“Advocates are calling on the new progressive City Council, which for the first time in history has a majority of women, to reject this attempt to allow corporate pressure to obstruct the needs of workers.”

A pay transparency law went into effect in Colorado in January 2021. The state of Washington will require salary ranges on postings made by my employees with 15 or more workers starting in January 2023.

California lawmakers are considering a similar bill.

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