Many Employers Will Soon Have to Advertise Salary Thanks to Two New Laws
Labor, Employment and Benefits attorney John Haney spoke with CNN about new laws passed in California and New York City that require employers to disclose salary information in job advertisements. The New York City law mandates that companies provide a "good faith" pay range with the minimum and maximum base salary or hourly wage, and the California law requires employers to include the salary or hourly wage range for what they "reasonably expect" to pay for the position. Both laws aim to increase pay transparency, but Mr. Haney noted that because employers draw on a variety of factors, from legal requirements to market competition, when setting pay, the information presented could vary across industries and companies.
"For instance, [Mr.] Haney said, they legally can't make a position exempt from overtime unless it pays above a certain threshold (which differs from state to state) and it meets a so-called duties test, which clarifies that the position can't primarily include duties more typical of overtime-eligible jobs. So companies may end up displaying several ranges based on location."