NYC Joins the Wage Transparency Bandwagon
Although 2022 has just begun, the employment scene in NYC is already hot. In December 2021, the city council passed a law requiring employers to indicate a minimum and maximum salary on job postings and advertisements. Employers in NYC should develop a plan for both internal and external job postings ahead of the May 15, 2022, effective date.
Employers will need to indicate the salary ranges on new jobs, transfer opportunities, and internal promotions. Similar laws are already in place in a handful of jurisdictions.
The NYC legislation is among similar wage transparency bills enacted across the US. For instance, Colorado recently passed a law requiring employers to include total compensation reports (salary, bonuses, and benefits) in job postings.
What Are the Requirements of the Wage Transparency Law?
Beginning April 2022, NYC employers will be required to include a salary range in all job vacancies. For those who aren’t sure of the exact maximum or minimum salary for a particular role, the legislation provides that the range can extend from the minimum to maximum salary an employer believes they would pay for the job, transfer, or promotion.
According to supporters of the NYC wage transparency bill, this law will address pay inequality issues. Often, job candidates don’t receive salary information or employee benefits reports until the hiring process ends.
Employers who’ll skirt the law risk getting slapped with fines or lawsuits. As per the existing provisions, the New York City Commission on Human Rights can impose a maximum penalty of $125,000 for discriminatory acts or practices.
If the mayor signs the bill into law, it will:
- Require all employers to provide salary ranges for job positions within New York City.
- Make it an illegal and discriminatory practice to not include salary ranges in job postings for positions within the city.
- Authorize the NYC Commission on Human Rights to implement it.
Once it gets passed, the law will apply to all companies with more than four employees, including contractors. However, it won’t apply to job postings by placement agencies for temporary positions.
Is Wage Transparency Good for Business?
Proponents of the legislation argue that it’s long overdue. It will eliminate the inequality that exists in the hiring process. The new law should help identify and hopefully reduce or eliminate the systemic pay inequalities that primarily affect women and racial minorities. Providing total benefits statements in job listings can also help employers retain their most talented staff amid the Great Resignation.
Generally, salary transparency is a sensitive topic; but, keeping employees informed can bring goodwill to an organization. On the flip side, skirting the salary transparency conversation brings more public scrutiny. A case in point is Google, which couldn’t keep hiding its gender pay gap. Publicizing employee benefits reports also protects companies by minimizing the risk of unequal treatment claims. Likewise, it boosts employees’ motivation, productivity, and collaboration.
COMPackage: The Go-To Benefit Statement Software
When the wage transparency bill becomes law, New York City-based companies will need employee benefits software to generate reports indicating what employees earn. COMPackage is one such tool, since it allows both small and large organizations to generate compensation statements conveniently, securely, and affordably.
Investing in the software enables employers to provide employees with detailed compensation statements. Similarly, employees can see their benefit statements and determine how much they’re valued at the workplace.
With more than 60 company-paid perks and benefits to include in a total compensation benefits report, COMPackage ensures transparency between businesses and employees. A small company can use the compensation software to create benefits reports for as little as $8 per employee. Likewise, unlimited reporting is provided to professional service agencies and larger companies for as little as $1,559 annually.