New York State Makes Posting Salary Ranges Mandatory

Posted by Nailah Herbert in CareerMay 24, 2022(Last Updated November 29, 2022)3 min read
Key Takeaways
  • New York City Mayor Eric Adams stated that companies that employ four or more employees must disclose the salary ranges of positions they wish to fill by November 1, 2022. 
  • This implementation plan aims to allow job applicants to know the accurate pay range before applying for a job or discussing salary negotiations. 
  • Although New York is not the first state to impose a law regarding salary disclosures, the increasing number of states doing so shows steps are being taken to make the labor market more transparent to workers.
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New York City Mayor Eric Adams has stated that companies that employ four or more employees must disclose the salary ranges of positions they wish to fill. Initially, this law was supposed to be implemented by May 2022. However, as a new mayor was elected and put in office in January 2022, a six-month delay was initiated to give businesses enough time to disclose their salary ranges before the November 1 deadline.
 

Why New York is Making Disclosing Salary Ranges Mandatory

 

The implementation plan of requiring New York employers to disclose salary ranges aims to allow job applicants to know the accurate pay range before applying for a job. 
 

When people are in the process of finding a new job, they are often blind to the pay offer. As a result, sometimes, the pay they expect from a role is much lower than anticipated. The lower-than-expected income leaves the applicant in a difficult position to accept a job with low pay or go through the same process again, hoping for a different result. By making companies now disclose the pay ranges, applicants can decide upfront whether a job is worth their time and effort of going through the applying and interviewing process. 

Another benefit of disclosing salaries is more accurate pay negotiations. Salary negotiations are a crucial part of starting a new job. Without knowing the salary range offered, the best chance of receiving fair pay is through researching the salary of similar roles at similar companies. Without the disclosure, it has also given companies a better opportunity of declining or reducing the negotiated amount, resulting in a higher chance of lack of pay equity.
 

However, this new law will now lower the chances of companies having the upper hand in negotiations. It allows the applicant to have the right to a fair negotiation upon receiving their job offer. 

 

As this new law poses many benefits to the average worker, many have taken to social media to express their support for the new law. 

 

Drawbacks of New York Making Disclosing Salary Ranges Mandatory

 

Although this new law protects many workers and job applicants from being victims of unfair pay negotiations, it becomes difficult to enforce on small businesses. As mentioned before, companies must disclose the salary ranges of the position they are trying to fulfill. However, small businesses usually lack many employees, meaning the positions they are trying to fill usually have no predecessor. If there is no predecessor, the small business may not be able to disclose the salary range accurately.

If small businesses cannot accurately estimate the pay an applicant may receive, they will have the upper hand when it comes to salary negotiations. As a result, they can manipulate the person applying for a job and try to get a lower salary.

 

However, just as applicants can research salary ranges for similar positions, small business owners can also analyze the market for any new jobs they would like to offer.
 

Future Impacts of New York Making Disclosing Salary Ranges Mandatory
 

New York is not the first state in the United States to implement this law, as states like Maryland, Rhode Island, and Washington have created a similar rule before.
 

With numerous states already taking action against companies and ensuring they have fair salary practices, it is safe to say others will continue to follow a similar course of action. Over time, this new law, both in New York and other states, will give more power to job applicants and allow them to have more control over salary negotiations. Everyone should be treated fairly through the salary negotiation process, and no one should feel as though they are being under-compensated for their work. 

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