New York City’s pay transparency law, which takes effect Nov. 1, is likely to spur workers across the country to seek raises, the New York Post reports.
The pandemic prompted many companies to hire remote workers, including those in New York. Now any job in New York or that could conceivably be conducted remotely in New York could be subject to the law. In addition, Colorado, Nevada and Connecticut passed salary range laws in 2021, and California and Washington are expected to do the same in the coming months.
In an effort to give job seekers pay transparency and to lead to more equitable pay, companies in New York will need to include the minimum and maximum pay in job listings.
The revelations are likely to embolden more workers to seek better pay, even if it means “tricky” conversations with their bosses, says Eli Freedberg, a partner with employment law firm Littler Mendelson.
“When a current employee sees a new salary posted, and they’re at the low end of the range, that’s going to raise some uncomfortable questions,” Freedberg says. “This is going to have a tangible result in inflating wages of current employees.”
Some consultants, including Brian Kopp, a managing director with Accenture, think that even in markets where the cost of living is lower than major cities, workers who pick up on ads for positions similar to their own that pay more, and raise the thorny issue with their superiors.
Hourly wages, which are typically in a narrow band of between $15 and $22, are not expected to be as impacted as white-collar earnings.
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