Counsel LaKeisha M.A. Caton discussed New York City's Wage Transparency Law which takes effect on November 1, 2022, with the Society for Human Resource Management (SHRM) in a recent publication. The New York City Pay Transparency Law amended the New York City Human Rights Law, making it an unlawful discriminatory practice to post any job listing that does not include the minimum and maximum salary or hourly wage offered for the position. According to SHRM:
"Pay compression occurs when there is minimal difference in pay between tenured employees and new hires despite differences in their respective knowledge, skills, experience or abilities," said LaKeisha Caton, an attorney with Pryor Cashman in New York City. The publication of salary ranges might exacerbate the problem of pay compression because employers may feel pressured to offer higher starting salaries to attract strong applicants, while the salaries of tenured employees remain stagnant to balance the increased costs, she said.
"As a result, new hires could earn nearly the same compensation, or more, than tenured employees in the same position," Caton said.
Read the full article linked below.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.