A new anti-bias law in New York City will require employers to share the salary details on their job postings. This law is designed to help close the gender wage gap and give everyone a level playing field when it comes to negotiating salaries. While this is good news for equality, many employers will not be ready to disclose salaries until they have aligned their internal policies and ensured legal compliance. This has forced some employers to remove job listings leaving recruiters scrambling to fill their talent pipelines.
The new law, which goes into effect on November 1st, 2022, applies to all employers with four or more employees in New York City. The law prohibits employers from inquiring about an applicant’s salary history during the hiring process. Additionally, employers must provide applicants with the salary range for the position at the beginning of the job application process.
If a company isn’t complying with the law, job seekers and workers can file complaints or leave an anonymous tip with the city’s Commission on Human Rights, which may initiate an investigation. Individuals with claims against a current employer may also file a lawsuit in civil court.
If a business violates the law, they may have to pay monetary damages to affected employees, update their job ads, create or update pay policies, conduct trainings and take other forms of recourse.
WHAT THIS MEANS FOR EMPLOYERS
- You must include salary information in all your job postings, both online and offline.
- You must make this information prominent and easily accessible.
- You could be subject to a fine if you don’t comply with the law.
- The best way to avoid penalties is to consult with an experienced attorney to make sure your job postings are in compliance with the law.
- This law only applies to employers in New York City; however, other jurisdictions may soon enact similar laws.
- The goal of the law is to help close the wage gap between men and women; therefore, it’s important that you review your salaries and make sure they are fair and equitable.
SMART EMPLOYERS FIND A WORK-AROUND
This law sounds straightforward and beneficial. We all want transparency in the hiring process. However, it is enormously complicated in the landscape of remote work, current employee salary ranges, level of expertise and education; and until HR Teams are fully aligned and compliant with the law, many companies are removing job listings from their sites, making a recruiter’s job that much harder. One way around these challenges is to work with vendors that do no use advertising to attract candidates such as a sourcing platform like Visage, or more expensive staffing agencies. These platforms provide access to a vast pool of qualified candidates without requiring employers to post job advertisements. This means that employers can avoid disclosing salary information until they have had a chance to screen candidates and narrow down the field. Talent Acquisition Teams have faced an onslaught of new regulations (e.g. AI bias laws in recruitment) and other challenges in the last few years since Covid, contributing to recruiter burnout, but finding smart tech solutions helps them level up their recruitment skills and ease the busy work burden.
The new anti-discrimination law in New York City is a game-changer for employers. If you do business in NYC, it’s important that you understand your obligations under the new law. Failure to comply could result in expensive fines. The best way to avoid penalties is to consult with an experienced attorney who can help you ensure that your job postings are compliant with the law. In the meantime, Visage can also help seek out the best candidates faster without a job posting. So if you want to Search LESS. Engage FASTER and Hire SMARTER, and stay compliant under the new employment laws, contact us today.