November 1, 2022 was a monumental day for talent acquisition teams at companies headquartered in New York City. As you may have guessed, that was the day the city ushered in its new pay transparency law.
If you’re unfamiliar with the law, here’s the TL;DR. In November 2022, New York City passed a pay transparency amendment to the NYC Human Rights Law, requiring employers to disclose a ”good faith salary range” in job descriptions and postings. Not abiding by the law could land your company in hot water – to the tune of up to $250,000 in fines.
New York City’s new law has left many talent acquisition teams scrambling to create and incorporate pay bands into their hiring process. According to a LinkedIn poll from Shelby Wolpa, Advisor at PeopleTech Partners, 21% of respondents said they don’t even have pay bands yet, while 40% have pay bands but have not shared them with candidates.
Now that the law has been active for a month and some change, is it actually working? Have employers risen to meet this moment, or are they just doing the bare minimum to avoid getting fined?
We took to LinkedIn to see what talent leaders think about the new pay transparency law and if companies are truly taking the mandate to heart. Read on to find out what they had to say.
6 hot takes on New York City’s pay transparency law.
“Pay transparency in NYC looks like this so far: Disappearing job listings. Missing salary information. Roles that pay between $1 and 1 million a year.”
– Neela Singh, Entrepreneur
“I’m seeing too much nonsense since the new pay transparency laws took effect. Tactics like this won’t make any candidate want to work with your company. It screams UNETHICAL.”
– Kimone Napier, M.S, Founder at Hire Breakthrough
“What happened to that 2020 statement about pay equity? Y’all look deceitful. Pay transparency has proven to increase job performance, build trust, and improve employee retention.”
– Jessica Winder, SVP of People at Refine Labs
“A ‘base salary range of $88,400-$185,000’ is the range for an entire department, not one position.”
– Farah Shargi, Head of Recruiting & HR at Dil Mil
“If your posted pay range is between $100K and $500K, you might be doing more damage than good in attracting good candidates…”
– Harrison Kim, CEO at Pavestep
“Legal loopholes, if there’s a will, there’s a way.”
– Kelli Hrivnak, President and Principal Recruiter at Knak Digital
Is your team prepared for pay transparency?
Check out the Pay Transparency Checklist to uncover 8 steps your team can take to remain compliant and provide the best candidate experience in the business.