Loeb New York Employment & Labor chair Ian Carleton Schaefer spoke to The Wall Street Journal about New York City’s new law that will demand businesses to include the minimum and maximum salaries on job postings. The mandate, which will take effect May 15, 2022, is already gaining opposition from business entities.
Employment professionals say that New York’s new rule may be more significant compared to similar laws in other states due to the scope of the city’s economy and the amount of large multinational companies operating there.
“It is a big deal,” Ian noted. “Companies are going to have to very quickly get very comfortable with how they’ve been making pay determinations along equity lines.”
Ian also said that he believes current workers will look at open positions at their company to compare where their own pay falls within a salary range. That could then put tension on company executives, with employees asking, “‘Why am I not at the high end of the range?’” he said.
That being said, Ian told The Wall Street Journal that he expects New York-based companies will review their pay scales and decide whether they should be revised or stay in its present range.
“It’s all out there,” he said. “The curtain has been pulled back.”