Salary Transparency Law: How New York Employees May Benefit From The New Legislature?

States like California and Colorado also have the same law in place.

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An employee handles packages at the Amazon's centre of Bretigny-sur-Orge, on December 14, 2021. THOMAS SAMSON/AFP via Getty Images

Starting Sunday, employers across New York State will have to disclose proposed pay rates as a new salary transparency law goes into effect.

This landmark legislation aims to promote fairness in compensation, prevent discrimination based on age, gender, and race, and empower workers to make informed career decisions, CBS News reported.

New York's Salary Transparency Law

Under the newly enacted law, employers with at least four workers must disclose salary ranges for any job advertised internally and externally. This move is seen as a significant step in promoting pay transparency and equity in the state's job market.

It's worth noting that the law extends to remote employees who work outside New York but report to a supervisor, office, or worksite-based in the state, ensuring that all workers are covered by its provisions. However, government agencies and temporary help firms are exempt from this requirement.

Similar to a pay transparency ordinance in New York City since 2022, this statewide legislation is a response to the growing demand for transparency and equity in the workplace.

Employers with at least four workers must disclose salary ranges not only for jobs advertised externally but also for positions that are internally advertised to workers interested in a promotion or transfer.

The underlying objective of this law is to prevent employers from offering disparate salaries to job candidates based on irrelevant factors such as age, gender, race, or other discriminatory criteria.

Pay transparency supporters argue that this will ensure that compensation is based solely on an individual's skills, experience, and qualifications, fostering a more equitable job market.

Advocates believe that implementing this law could have a profound impact on underpaid workers, helping them recognize situations where they are earning less than their counterparts performing the same job.

By making salary ranges accessible to all potential applicants and internal employees, individuals will have the information they need to negotiate fair compensation and advocate for their worth. New York State now joins the ranks of a select few states, including California and Colorado, with similar pay transparency laws in place.

This trend highlights a growing desire among workers to have greater insight into what they can expect from a job regarding compensation. Da Hae Kim, a state policy senior counsel at the National Women's Law Center, comments on this trend, stating, "There is a trend, not just in legislatures but among workers, to know how much they can expect going into a job.

There's a demand from workers to know the pay range." This demand for transparency underscores the importance of this legislation in addressing the concerns of the modern workforce, as per to Syracuse.

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Salary Structure Assessment for Employers

To avoid potential legal issues and ensure compliance with the new law, employers must carefully examine their pay structures for current employees. Allen Shoikhetbrod, an employment law practitioner at Tully Rinckley, a private law firm, suggests that employers should conduct thorough assessments to establish fair and competitive salary ranges.

State Senator Jessica Ramos, a Democrat representing parts of Queens, celebrates the enactment of this law as a significant victory for labor rights groups. The law reflects a broader movement towards more equitable and transparent employment practices, benefiting both workers and employers in the long run.

New York State's new salary transparency law represents a significant stride towards fostering fair compensation practices and combating discrimination in the workplace.

By requiring employers to disclose salary ranges for advertised positions, this legislation empowers workers to make informed decisions and ensures that compensation is based on merit rather than extraneous factors.

As the state joins the ranks of others with similar laws, it reflects a growing desire among workers to have greater transparency and fairness in their employment opportunities. This law is a positive step towards creating a more equitable job market for all New Yorkers, according to ABC News

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