In A Big Win For Workers—New York City Will Make It Mandatory For Companies To Disclose Salaries On Job Advertisements

It feels like almost everyone is looking for a new job. There are about 11-million jobs available, and each month millions of Americans quit their positions in pursuit of better opportunities. One of the most important aspects of a new job is the compensation. Up until now, the overwhelming majority of companies conveniently left out the salary from their job advertisements.

Lost in the holiday season and the surge in Omicron, there was a piece of great news that went overlooked. Under a new law passed by the New York City Council—which will go into effect in April 2022 if not vetoed by January 14, 2022— employers in New York City will have to include the minimum and maximum starting salary for any "advertised job, promotion or transfer opportunity."

This will be a complete game changer, and bode well for both people searching for a new job and current employees. The piece of legislation pulls back the curtain on salaries, which has often been viewed as a deep dark hidden secret by corporate executives.

This unfair one-sided way of doing business is detrimental to the person seeking out a new job.

An applicant would be forced to interview with three to six plus people for up to six months. After the culmination of the arduous emotionally draining interview process, an offer could be made that is far below the expectations of the eager candidate.

The ordeal was a complete waste of time and energy for everyone involved in the hiring process. The experience looks bad on the company. The disheartened job hunter will surely share this horror story on social media and with friends which could make it harder for the company to recruit people in the future.

Even in this hot, tight job market, the interview process usually entails enduring some rude behaviors, cancellations of interviews at the last moment, lack of feedback, getting ghosted and receiving a lowball offer. When the new law comes into practice, things will be different.

A person will have the ability to see the salary range and make an informed decision to pursue the role or not. There would no longer be any guesswork or wishing that the money will be there at the end of the interview ordeal, as the job hunter will have the compensation range up front.

The bill, which passed with a 41 to 7 vote, states that employers who fail to list minimum and maximum salary ranges for New York City-based roles are engaging in discriminatory practices. This bill applies to advertisements for both private and public sector jobs, as well as promotions and transfer opportunities.

Council member, Helen Rosenthal, said of the new law, “Lack of salary transparency is discriminatory and anti-worker,” and “Every New Yorker should have the right to determine whether they will be able to support themselves and their family when they apply for a job. It is time to level the playing field, and restore some dignity to New Yorkers seeking employment.”

There are pay transparency laws already in California and Colorado, and it's likely with New York aboard, this will spread throughout the country.

In a fairly recent new law enacted by a number of states, it was ordered that businesses couldn’t ask a job hunter how much they earn and what was their salary history. Although it's not a law in all states, a significant number of companies based in locations that don’t have to abide by the ruling, voluntarily adhere to this ‘no questions about compensation will be asked’ policy.

There will be positive, and some unintended consequences resulting from this new rule.