Pay transparency is coming

If you’re considering a new job, you want to know how much it pays, right? But how often do you find bullshit non-info like “competitive” instead?

In NYC, employment agencies and businesses with over four employees — including at least one located in the city — must now include base pay in job listings, per NPR.

• Pay or ranges must be clear; no murky statements like “up to $15/hour.” Health insurance, PTO, and other benefits are not included.
• The rules apply to postings for full- and part-time employees, interns, contractors, and domestic workers.
• Violators get 30 days to shape up, or else face up to $250k in penalties.

Some companies are compliant with the new rules, which went into effect Tuesday, while others earned a thumbs-down from NiemanLab for absurd ranges — like The New York Post’s $50k-$145k for a tech reporter.

Why it matters

Pay transparency is on the rise, with similar laws in place or coming domestically and abroad.

As a result, people won’t waste time applying for jobs only to find out they underpay, while businesses that do offer fair compensation will attract top talent.

Pay transparency also:

• Helps prevent pay disparities, including wage gaps faced by women and people of color
• Allows less experienced workers to get an idea of what a position should pay and avoid being lowballed
• Shows students their earning potential in a chosen field of study
• Improves motivation among workers who know they’re being paid fairly — or leads workers who discover they’re not to find better jobs.

And although many states are banning employers from asking for salary history, being underpaid can still haunt workers long-term.

Remember, that’s not just less in your pocket, but in retirement savings, too.

BTW: Need to negotiate your salary? We’ve got tips.