Understanding the new Wage Transparency Law

The laws around the way that jobs are advertised are changing in New York. On November 1, the Wage Transparency Law will go into effect. This is an amendment to the New York City Human Rights Law.

Essentially, the amendment says that businesses have to list the pay when posting a job advertisement in New York City. This also applies to some remote work jobs. Traditionally, businesses have not told employees what type of compensation they could expect to receive, or they may have said that it was based on experience and other details that would be sorted out in the interview.

Why is this change happening?

The change means that the hourly wage has to be listed, or the job posting has to say what the minimum and maximum salary would be. If there is a difference in the hourly wage between different employees, the minimums and maximums also have to be listed.

By not releasing this information, companies have historically been able to take advantage of certain groups of people by keeping their wages artificially low. This new law would at least give employees the knowledge that they were being paid at the top or the bottom of the pay scale for that position.

What is pay compression?

Pay compression is when new hires and the employees who have been with the business a long time don’t have much of a gap in their salaries. This new law can help prevent pay compression.

It’s very important for everyone to understand how this new law is going to impact businesses, employers, wages and employees. Make sure you know about all of the legal options at your disposal if you believe your employer is not following the law.

super lawyers
New York County Lawyers Association
New York City Bar
NELA Advocates for Employee Rights National Employment Lawyers Association
lead counsel lc verified