'Dark Salary' Disappears... New York City Mandates Salary Disclosure in Job Postings

Mandatory Detailed Disclosure of Wage Ranges for Companies with 4 or More Employees
Aiming to Eliminate Gender Wage Gap and Enhance Salary Transparency
Business Community Opposes, Predicting Increased Turnover and Hiring Difficulties

[Image source=Yonhap News]

[Asia Economy Reporter Kim Sung-wook] From now on, companies in New York must specify salaries when posting job openings. According to Bloomberg and others on the 1st (local time), a law requiring companies to disclose salary ranges in job postings has come into effect in New York City this month. Accordingly, companies with four or more employees based in New York must clearly present the wage range payable for the position when posting job openings. The same regulation also applies to internal promotions and employees wishing to transfer. Businesses with fewer than four employees or temporary staffing agencies hiring temporary workers are exempt from the law.

The so-called "Salary Disclosure Law" was enacted under the leadership of the New York City Commission on Human Rights. This law was introduced to eliminate gender pay gaps and enhance salary transparency. Originally scheduled to take effect on May 15, a bill was proposed in the city council to postpone the enforcement to November due to opposition from the business community. From this day forward, violations of the Salary Disclosure Law will result in fines of $250,000 (approximately 350 million KRW).

The business community remains negative. They argue that during a period of tight labor supply and demand, the Salary Disclosure Law will negatively impact employment conditions. Accordingly, companies appear to be considering salary increases in line with the law’s enforcement. According to a survey of 884 companies in North America by consulting firm Willis Towers Watson, about one-third responded that they are reviewing or implementing wage increases.

However, there is also a possibility of a reversal phenomenon where existing employees’ wages are lower than the salaries stated in job postings. Comparing salaries may lead employees to complain to the company or move to competitors, which could increase confusion. In fact, some companies are known to have distributed model responses to executives and staff to handle such complaints.

There are also positive evaluations that employees will have grounds to demand appropriate wages. According to the law’s intent, pay disparities by gender and race will be resolved, and gradually, reasonable compensation can be provided to a more diverse group of organizational members. Recently, similar laws have been enacted in other states such as Colorado and Washington, indicating signs of nationwide expansion.

Palace Eckelman, a lawyer at Jackson Lewis P.C. active in New York, said, "Some large U.S. companies have started providing salary information in all their job advertisements nationwide," adding, "It is likely driven by the spread of this law, but there is motivation that it could potentially benefit them." He emphasized, "I hope this law is simpler than many employers think. You just need to post the salary range."

This content was produced with the assistance of AI translation services.