Historic NYC Salary Transparency Law in Effect on November 1, 2022
Hailed as Game Changer in the Fight to End Wage Inequality
Contact: Beverly Neufeld, bev@powherny.org 914.329.4046
The long awaited NYC Salary Transparency Law, Local Law 32, which goes into effect today, requires most employers in New York City to include the minimum and maximum salary range for every job, promotion, and transfer opportunity advertised. The salary range must be set in good faith and reflect how much the employer will pay for the position. The law which is part of the NYC Human Rights law applies to employers that have four or more employees or one or more domestic workers. The workplace is covered as long as at least one of the employees works in New York City. > View the NYCCHR Factsheet
Advocates thank NYC Mayor Eric Adams and the NYC Council for their work to promote equity through this law, and former Council member Helen Rosenthal for championing this and other legislation which will benefit workers, especially women and people of color.
A similar bill was passed by the New York State Assembly and Senate in June 2022. We urge Governor Hochul to sign it without amendments so that all New York workers and businesses can benefit from salary transparency.
Identifying the expected wage range for jobs will provide applicants with the information necessary to negotiate fairer salaries, and thus help to end the pernicious wage gap that continues to rob some workers, particularly women of color, of fair wages and economic well-being. This transparency will create a shift in practices and in culture that will put all jobseekers on more equal footing.
With salary ranges out in the open, employers must think critically about how they set pay at the front end of their process, addressing unconscious biases in hiring practices. Research reports that for businesses, it will make the hiring process more efficient and help to hire and retain the best talent to match their needs.Transparency reflects a company’s values and culture which are key influencers for jobseekers.
QUOTES:
“As of today, the vital information that jobseekers need to evaluate whether job opportunities meet their needs will be readily and routinely shared by NYC employers. That is a game changer in the fight to close the gender and racial wage and opportunity gap. This new era of openness will also help businesses attract, hire, and retain the best talent for the best financial outcomes. This is an historic win for New York City!” said Beverly Neufeld, President of PowHer New York, a network of over 100 gender and racial justice organizations collaborating for women’s economic equality.
“The Salary Transparency Law brings equity into a process that has long been unfair to New Yorkers,” said NYC Mayor’s Office of Equity Commissioner Sideya Sherman. “Moving forward, job seekers can confidently enter negotiations that ensure their talents and credentials are better matched with salary expectations. This is a seismic shift in pay transparency and a welcomed mandate that will help advance pay equity.”
“I’m proud to have served as the lead sponsor of this legislation and happy to see it take effect in New York City. This bill is a critical step in the fight for economic equity. This legislation will help close the wage gap for women and people of color” said Council Member Nantasha Williams. “As Chair of the Committee on Civil and Human Rights. I am also pleased that this bill passed with overwhelming support from my colleagues in government. It demonstrates our commitment to making sure everyone has an equal chance at success regardless of gender, race, or socioeconomic status. I would like to thank the original sponsor of this bill, Council Member Helen Rosenthal, the co-prime sponsor Council Member Justin Brannan, and Speaker Adrienne Adams for her leadership.”
“Salary range transparency is one tool that can lead to pay parity. I want to thank and congratulate Bev Neufeld, the President of PowHer NY, for her tireless pursuit of parity for women— specifically women of color. Many more tools are necessary to achieve pay parity, including expanding the transparency to total compensation and giving current employees an opportunity to learn the salary/compensation range for all employees with the same title,” said Helen Rosenthal, Former City Councilwoman (2014-2021) and Chair of the Committee on Women and Gender Equity. “I also want to thank the NYC Commission on Human Rights for their education program to ensure that all job applicants and employers are aware of this new law.”
“New York City is leading the way for the rest of the state. Over the course of the pandemic, the wage gap for Black and Brown women only widened, and as a response, we fought hard for this bill both on the city and state levels. While we wait for Governor Hochul to sign my bill for salary disclosure requirements, we need workers in NYC to exercise their right to transparency,” said State Senator Jessica Ramos, Chair of the Senate Labor Committee.
“Today, New York City joins Colorado in leading a movement towards pay equity. By mandating pay disclosure in job postings, this new law works to dismantle our prevailing culture of pay secrecy, which for too long has allowed gender and racial pay disparities to persist behind closed doors,” said Seher Khawaja, Senior Attorney, Economic Empowerment, Legal Momentum.
Miriam Clark, Chair of the NELA NY Legislative Committee, said, “This bill is a giant step forward on the road toward pay equity! We look forward to seeing the City’s approach expanded Statewide.”
Mary Luke, Vice President, UN Women USA and PowHer New York shared, “PowHer New York is a proud member of EPIC, a global consortium supported by UN Women and the International Labour Organization (ILO) to promote gender pay equity around the world. Its study Pay transparency legislation: Implications for employers’ and workers’ organizations .finds that pay transparency measures can help to address the gender pay gap and reduce broader gender inequalities in the labor market. Thanks to NYC for setting an excellent example for others to follow in the US and around the world.”
Pay transparency which leads to pay equity practices is even more critical than before – not just because employees want to know, but because CUSTOMERS want to know. The latest research1 from The Conference Board on consumer purchase intent shows that 60% of consumers base their buying decisions on whether the organization achieves pay equity for their employees, and is their number one concern. Organizations that embrace pay transparency and strive for pay equity will keep their current and get more customers as this is a key consideration when consumers spend money.” Solange Charas, Ph.D., CEO, HCMoneyball.
Andrea Johnson, Director of State Policy, National Women’s Law Center said “Job candidates and employees have long been demanding pay transparency and New York City delivered. New York City’s new salary transparency law will help employers close gender and racial wage gaps and more efficiently recruit and attract talent. It is a win-win for employers and employees. And New York City is not alone in recognizing pay transparency as an urgently-needed tool for closing gender and racial wage gaps: California, Washington, and Colorado recently passed similar laws and more states and cities are set to follow. Transparency is here to stay.”
“We applaud the New York City Council, New York City Mayor Eric Adams, PowHer New York, Legal Momentum and numerous others for championing this legislation,” said Jessica Ramey Stender, Policy Director & Deputy Legal Director at Equal Rights Advocates, a strong supporter of the bill. “Transparency is key if we want to close the gender and race wage gaps, which still persist in nearly every industry and occupation nationwide. Providing salary ranges on job postings empowers women and other workers with information they need to make the best decisions for their families and negotiate for the income they deserve.” # # #