Businesses in New York City are facing a new pay transparency law that will likely cause strife among current employees. Starting May 15, employers with four or more employees are required to list minimum and maximum salaries on all job opportunities. As written, the law impacts approximately 200,000 businesses and 30,000 nonprofit organizations across the five boroughs. Other states, including California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, and Washington have some sort of pay transparency laws already in effect, and it’s likely more will follow.
It likely won't be an easy transition for businesses, and many are worried about the bill rattling current employees, and prompting them to inevitably question how ranges offered to job candidates relate to their own compensation. However, there are ways businesses can get ahead of the law and help employees feel more comfortable with their pay. Read on for what you need to know about preparing for radical pay transparency.