New York City's wage transparency law takes effect: Job ads must include pay range
Some companies – Google, IBM, Wells Fargo – also join the growing list of other cities and states that have adopted various wage laws in a bid to close the gender and racial wage gaps.
Alphabet’s Google, IBM and Wells Fargo joined a growing group of companies listing pay ranges on all their US job postings — not just where it’s required by law.
As of Nov. 1, Google and IBM confirmed to Bloomberg News that salaries will appear in postings for all open roles across the country.
“IBM recognizes the value and importance of wage transparency and, beginning November 1, 2022, will include pay ranges for all new US job postings,” Jessica Chen, a spokesperson for IBM, said in an email.
Wells Fargo says it’s working on implementation, but some job postings already have pay information listed for various US cities. “This approach is aligned with company expectations to do what’s right,” said Natasha Webster, a spokesperson for Wells Fargo.
Only New York City and Colorado currently require pay ranges to be listed on job ads. With regulation slated to take effect in California and Washington state next year — and New York state potentially to follow — more companies have been motivated to adopt the salary range practice on listings nationwide.
Related: Making salaries public will soon become the norm, says survey
On Monday, American Express Co. confirmed a similar move the day before New York City’s requirement for employers with four or more workers in the city went into effect on Nov. 1. Citigroup Inc. is already posting salary ranges with job listings. And Washington-based Microsoft Corp. will adopt the practice in 2023, it said earlier this year.
Surveys have found that a majority of employers are considering the same as more states adopt similar laws — and as workers demand more transparency on compensation.
Still, a glitchy start to the New York City law showed that many companies are resistant to the idea, or at the very least weren’t ready to disclose pay for even just city-based roles. Some companies took all their New York postings down and others had no compensation listed at all, as of Tuesday.
US cities and states have adopted various wage transparency laws in a bid to close the gender and racial wage gaps. In theory, having the information out there levels the playing field. New York City’s law, however, only requires “good faith” ranges for jobs and does not include benefits or bonuses, which in fields like finance can make up the bulk of someone’s compensation.
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