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Report finds NYC companies largely in compliance with new salary transparency law
By
Gwynne Hogan
Published Nov 21, 2022
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By
Gwynne Hogan
Published Nov 21, 2022
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Just over two weeks since New York City’s landmark Pay Transparency Law kicked in and most companies are already in compliance, according to an analysis from Glassdoor, the online job portal.
A review from Glassdoor found that 60% of open job postings list salary minimums and maximums.
The law was heralded by advocates as a way to give job seekers more leverage in salary negotiations and to curb decades of pay inequality between men and women and between white workers and everyone else.
The city’s Commissioner on Human Rights, tasked with enforcement of the new law, didn’t return multiple requests for comment on how many complaints the office has fielded since the law kicked in, or how many warnings have gone out to employers for non-compliance. Companies have 30 days to fix any violation before facing any fines, which could run up to $250,000.
Despite that, Glassdoor’s new report offers some early insights on the impact the law is already having within New York City and in the surrounding region.
Companies are largely in compliance
By mid-November, about 60% of job openings on the site in New York City included salary ranges, according to Glassdoor’s analysis. A month and a half earlier, just 30% percent of New York City job openings did.
“By and large companies are complying with the law,” said Daniel Zhao, the lead economist at Glassdoor, who authored the new report.
When broken down by borough, Zhao found Staten Island led the pack, with 70 percent of open listings offering salary ranges, followed by Queens, Brooklyn and the Bronx. Manhattan postings trailed the other boroughs with just 52% of job listings offering salary ranges, though Zhao suspected some national companies may list a Manhattan hiring location for jobs that aren’t necessarily based in New York.
Tech + Finance lag behind
Compliance with the new law isn’t even across industries, Zhao found. Government and nonprofit jobs posted salary ranges at some of the highest rates, at around 69%, while technology, finance and pharmaceutical companies lagged behind; posting salary ranges less than 40% of the time, the report found.
“Finance businesses just tend to be a little bit more old-fashioned. They don't want to reveal information if they don't have to,” Zhao said, though he added he was surprised technology companies were also at the bottom of the list.
“Tech was actually interesting to me because I feel like the culture in tech, it does lean more towards transparency… But they do also appear at the bottom of this list,” he said.
Zhao’s analysis didn’t include a breakdown of companies who were not in compliance with the new law.
Median salary ranges span $20,000
In the days after New York City’s law went into effect, anecdotes emerged of employers listing eye-popping salary ranges of more than $100,000, and advocates raised concerns certain bad actors would skirt the law by doing so.
But the Glassdoor analysis found salary range above $100,000 is relatively rare, occurring in less than 3% of job openings. The median job posting range was $20,000, the report found, with wider ranges for higher levels of compensation.
Jobs where the maximum salary was $70,000 and below had a median salary range of $16,768. That pay band widened the higher the salary range. Jobs offering more than $200,000 a year, for example, had a median salary range of more than $144,000.
‘Spillover Effect’ in surrounding states
Zhao flagged another interesting trend since New York City’s law kicked in. More job openings in New Jersey, Connecticut, and the rest of New York State where salary ranges are not required had begun posting them since the beginning of November.
New York City's pay transparency law is resulting in more pay transparency in other states, research finds
Glassdoor
About 46% of job postings in those areas offered salary ranges, from around 42% in October.
While it’s not as dramatic an increase as the spike that occurred in New York City, Zhao said he’d continue to watch that trend, especially as other pay transparency laws in California and Washington go into effect at the beginning of next year. The three jurisdictions together could lead major employers to list salary ranges nationwide in order to standardize their postings, even in areas that don’t require them to do so.
“One obvious question that I'll be paying attention to is whether this spillover effect continues,” Zhao said. “The reason that this law passing in New York City is so important is because New York is such a major talent market. So companies that hire in New York might decide to just roll out this policy nationwide.”
Tagged
new york city
economy
jobs
Gwynne Hogan
Gwynne Hogan is a former Gothamist reporter.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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