Last week, a new law went into effect that requires NYC companies to disclose expected salary ranges for all open positions. This law is a big shift in hiring practices and is seen by many as an important step towards more equitable pay for job-seekers. But what will this law mean for RPIE participants? 

What it is:

The new pay transparency law means that all NYC employers with more than 4 employees must share actual salary ranges for every listed position they are hiring for. In other words, employers must post the high and the low figures in the job advertisement itself and also must list every available position they are hiring for. The ranges are for base salary, and so they do not include the amount of other benefits like overtime, paid vacation, and health insurance.

Why it matters:

The pay transparency law is intended to give more agency to job-seekers in the application process. Many applicants find themselves having to turn down jobs at the last stage because of salary negotiations. Similarly, applicants–particularly those who are used to pay structures and job titles from other countries–may not have all the information they need to negotiate a fair salary. 

Pay transparency is also a major step to counter differences in pay for the same work at the same company. These differences, often called wage gaps, describe the difference in salary between two groups. For example, studies show that women are consistently paid 30% less than men for the same work; however, the gender wage gap isn’t the only wage gap. There are discrepancies in pay resulting from a number of backgrounds and identities, including ethnicity, sexual orientation, and immigration status. Now, companies need to make sure that they are paying their employees within the same range for the same work regardless of identity and background, reducing the likelihood of unfair wage difference. 

How it impacts RPIE participants:

In the job search, you can better target positions earlier on in the process that will meet your salary requirements. You will be able to compare open positions across various companies to find an accurate salary range for your job title.

The pay transparency law will also help you when you are negotiating your job offer. You can use the salary ranges to determine the amount you are asking for, and to make a better evaluation on whether or not the position is right for you.

Are you already employed? Existing employees can now look at the job advertisements to make sure that they are being compensated fairly. You can use the salary ranges to renegotiate your contract and to ask for a raise from your employer. 

Further Reading: 

A podcast distributed by the Wall Street Journal, a publication known for its financial coverage: https://www.wsj.com/podcasts/your-money-matters/how-pay-transparency-is-changing-the-job-search/7E1F18EB-1543-4F32-A23A-66C1F32D9580

An explainer from the New York Times, one of the area’s leading news sites: https://www.nytimes.com/2022/10/28/nyregion/nyc-salary-transparency-job-postings.html

A summary from NPR, the US national public radio station: https://www.npr.org/2022/11/01/1133375226/new-york-city-requires-employers-to-list-a-salary-range-for-posted-job-advertise