It was a quiet observation that sparked a big question. Job postings, usually a straightforward affair, started to look a little different. Specifically, in New York City, a new rule was supposed to make things clearer for everyone looking for work.
This rule aimed to bring pay out into the open. But some job listings, especially from well-known new companies, seemed to be missing a crucial detail: the actual salary range. It made people wonder, what was really going on behind the scenes? This overlooked story reveals more than just a missing number.
The Law That Changed Everything (Or Did It?)
New York City put a new law into effect in late
- This law stated that all job postings for positions based in NYC must include a good faith salary range. The idea was simple: give job seekers more power and make hiring fairer for everyone involved. It was a significant step towards a more equitable job market.
Before this law, many companies kept salary information secret until much later in the hiring process. This often led to wasted time for both job seekers and employers, as candidates might not discover the pay was too low until after several interviews. It also meant that some people might get paid less just because they didn't know what to ask for, perpetuating existing wage gaps. This law aimed to level that playing field.
The Curious
Case of Missing Numbers
Despite the new legal requirement, some job ads for companies in New York City seemed to ignore it. People noticed that certain startup job postings, particularly those from companies associated with a major startup accelerator, did not show any salary range. Even when clicking through to the company's own job portal, the numbers were still nowhere to be found. This pattern was consistent across several listings.
This raised eyebrows among those who were aware of the new rules. If the law was clear, why were some companies seemingly choosing not to follow it? It felt like a small, quiet rebellion against a rule designed for transparency, creating a puzzling situation for job applicants.
A Look at the Legal
Side of Pay Transparency
The NYC salary transparency law, officially Local Law 32 of 2022, went into effect on November 1,
- It applies to all employers with four or more employees, making it quite broad. The law covers internal promotions and transfers too, not just external job postings, ensuring a consistent approach to pay disclosure.
The purpose was clear: to reduce wage gaps, especially for women and people of color, and to promote fair pay practices across the city. Companies are expected to provide a minimum and maximum salary or hourly wage that they honestly believe they would pay for the role. This isn't just a suggestion, it's a requirement with potential penalties for non-compliance, including fines.
Why Companies Might Hold Back
There are several reasons why a company might not want to show salary ranges upfront. One big reason is negotiation power. If a company knows a candidate's current salary, they might offer less, trying to save money. If the candidate knows the full range, they can negotiate better, aiming for the higher end based on their skills and experience.
Another factor could be internal pay structures. Some companies might have employees doing similar jobs but earning very different salaries due to various factors, like when they were hired or their negotiation skills. Making these ranges public could cause issues or resentment among existing staff, forcing companies to address internal pay equity more directly.