New York: How are companies enforcing the pay transparency law?

Since 1^er November, any job posting for a job opening in New York City must display the corresponding salary. The primary objective of this law, which applies to companies with four or more employees, is to reduce wage inequalities which continue to the detriment of women and ethnic minorities. But also to give weight to candidates in salary negotiations.

The text stipulates that employers must indicate the minimum and maximum wages for each job offer, promotion or internal mobility offer, in full ” sincerity “, i.e. those they “honestly believe they are ready to offer successful candidates, at the time they post the job offer”.

A salary from simple to triple

A legal vagueness that gives rise to extensive interpretations of the notion of ” sincerity “. Some employers do not frankly play the game of salary transparency, as several Internet users have relayed on Twitter. In their viewfinder, job offers including a salary range ranging from simple to double, or even triple, which does not really help the candidate to position himself on the market or to project himself into his future position.

The Guardian cites in particular the example of the firm Deloitte, which offers a salary of between 86,800 and 161,200 dollars per year, or that of the Wall Street Journal, which displays a range of 140,000 to 450,000 dollars per year for a position of chief on duty. A job offer from Citigroup, mentioning a salary of 0 to 2 million dollars, caused a strong reaction from Internet users, before management let it be known that a computer error was at the origin of these absurd figures.

Blocking points for some employers

If it is easy to understand that the level of remuneration must be adapted according to the qualification, the professional experience and the profile of the candidate, how can such differentials be justified? In a context of inflation and the Great Resignation, some employers have inflated starting salaries and fear that the publication of these figures will encourage current employees to request a greater increase in their remuneration. Or even to resign if they feel that they no longer have interesting career prospects in their current company.

To refrain from publishing salaries without breaking the law, some employers may be tempted to stop posting job offers and encourage candidates to send their CVs directly to a generic email address, predicts the Wall Street Journal.

A boost effect on recruitment

However, according to Beverly Neufeld, president of the PowHer New York network, which promotes equal pay for women and men, companies have much more to gain than to lose by disclosing salaries in their job advertisements: “The purpose of the law is not to punish but to help businesses progressshe explains at gothamist. We are witnessing a real culture change. For some employers, it will take a little longer to realize that it is in their interest to adopt the rule of transparency”, particularly in terms of attracting and retaining talent. In Colorado, a similar law, which came into force last year, has certainly reduced the number of job offers published but has significantly increased the number of recruitments in the State.

What salary range can be considered acceptable for a candidate? According to Robin Blaire-Batte, member of New York’s Communication Workers Local 1180, interviewed by The Guardian, a difference of $30,000 to $40,000 between the minimum wage and the maximum wage would be reasonable. If larger discrepancies persist, the New York Human Rights Commission, in charge of applying the law, could well clarify the text.