New York City’s New Payroll Transparency Act is off to a rough start


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Starting Tuesday, companies hiring workers in New York City Wanted to list The minimum and maximum salary range for a job on any print or online publication.

Defenders say It is long overdue for companies to become more transparent in their wage practices. workers hope It will give them more leverage to discuss and negotiate their salaries. The main objective of the law is to help close the wage gap.

But as the numbers begin to be published this week, New Yorkers are starting to call in some companies to publish very wide ranges: $50,000 to $145,000 to open the reporter, $125,800 to $211,300 For a great technical writer, From $106,000 to $241,000 for the position of General Counsel.

In one case, Citigroup listed several jobs with a group of From 0 to 2 million dollarsGothamist Reports.

A Citigroup representative told Gothamist that it has since updated its domains, and that the astonishingly wide range was a bug caused by a computer glitch.

Still, a revised entry for a post for Customer Service Officer It listed a salary range between $61,710 and $155,290 as of Wednesday, before it was removed. A Citi representative tells CNBC Make It that the company “proactively reviews all job postings to ensure the correct salary range is included” and has “specific job postings that are temporarily unpublished and will be resubmitted when the salary range is confirmed.”

The posting slip highlights the many ways companies can find ways to comply with the new payroll transparency law, whether intended or not.

Employers test what it means to list a ‘goodwill’ scope

The law specifically states that companies hiring in New York City must post a “good faith salary range” for each job, promotion, or transfer opportunity.

A “good faith” scope is one that “the employer sincerely believes at the time the job ad is listing it is willing to pay money to the successful applicant(s),” The New York City Commission on Human Rights saysthat enforce the law.

Dominic Camacho Moran, New York-based attorney at Farrell Fritz, says companies may need to offer a broad range if they are open to people with different levels of experience and are competitive in the narrow hiring market.

A common business strategy is to find a target budget for an open role and give a range of 20% less than this point and above, adds Tony Guadani, senior director of research at consultancy Gartner.

But a range over $100,000 can be a mistake or a symptom that “what the organization is willing to pay for a job can be quite variable,” says Guadagni.

“It is hard to imagine that the two agencies investigating potential violations of the new law — the City Commission on Human Rights and the Office of Law Enforcement — would consider a posting that includes a minimum salary of $30,000 and a maximum salary of $300,000 in good faith representing the salary range.” But it’s up to investigators to prove the salary range is not in good faith — and companies don’t have to prove it.

Beverly Neufeld, president of PowHer New York, says the $90,000 salary range, like the salary range Citi listed and later deleted, remains “too broad” and “raises the question of whether this is a well-intentioned effort.” An advocate of the new law.

Likewise, wide ranges can reflect poorly on a company’s respect for workers, says Neufeld: “It says a lot about companies when they use potential loopholes. The spirit of the law is to create transparency, and any company with salary ranges as large as that doesn’t. It creates no transparency. “.

Avoid jobs completely

According to the law, employers must publish the minimum and maximum salary displayed for a particular role when it is listed on an internal job board, as well as external sites such as LinkedIn, Glassdoor, Indeed and other job search platforms. It also applies to any written description of an open job that is printed on a flyer, distributed at a job fair, or sent to newspaper classifieds.

In response, some companies may stop posting jobs directly and instead rely on other means of recruiting and hiring.

Some companies may choose to delete job postings and encourage applicants to send their resume to a public email address, The Wall Street Journal reports. Others may take advantage of headhunting firms to find candidates on their behalf, rather than advertise a vacancy and have to post the pay range themselves.

Employers can also avoid compliance if they hire remote workers but say the job can’t be done from New York City. that happened in Coloradowhere a similar law went into effect in January 2021. The state Department of Labor sent a warning to hundreds of employers to comply with the law, and as of July, it Three companies were fined for violation.

The New York City Pay Transparency Act takes effect November 1

Camacho Moran dismisses the idea that companies are deliberately trying to get around compliance, because doing so and getting arrested could lead to lawsuits that would cost the employer time and money.

In New York City, if the company does not comply with the new law, job seekers and workers can file complaints or leave anonymous tips with the city administration. Human Rights Commission. Companies will have 30 days to fix the breach, or else they could face civil penalties of up to $250,000.

Despite the uneven application of the law so far, Neufeld is optimistic that companies will continue to boost their salary ranges with the help of public accounting and legal enforcement.

The implications of the law can be beneficial to both employers and employees. Job seekers are overwhelmingly in favor of Salary transparency, and more than half say they won’t apply for a job or company if salary isn’t listed, according to Monster.com data. A pay list can end up being a good recruitment tool.

“It will take a while for people to comply,” Neufeld says, but “in time, companies will come to see this as a benefit, not a punishment.”

paying off:

‘The more transparency, the better’: How New York City job seekers say visible pay ranges will help them

Salary Ranges Coming for New York City Job Postings on November 1st — Here’s What You Should Know

28-Year-Old Former Teacher Now Gets $110,000 – How Working for a Transparency Company Helped Pay

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