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Thursday, October 1, 2026

New York City Pay Transparency Law Takes Effect Nov. 1 - SHRM

As of Nov. 1, a new era begins for some New York City employers that will now be required to include salary information in advertisements and job postings. It's time for employers with at least four employees to ensure they're in compliance. We've gathered articles on the news from SHRM Online and other outlets.

Compliance Steps

Covered employers should take a range of measures to ensure they're in step with the new law, including the following:

  • Review the salary ranges of current employees to determine an accurate compensation range for all positions before publishing job advertisements.
  • Evaluate salary ranges, with a thorough documentation of the evaluation process, to meet the good-faith requirement of the law to prepare for possible complaints and investigations.
  • Conduct a pay equity audit to find and address any unlawful pay disparities.
  • Confirm that any job-recruitment agencies the employer works with are in compliance with the law. Temporary-help agencies are not covered under the law.

Pay Transparency Law May Result in Pay Compression

One of the unintended outcomes of complying with the law may be pay compression. "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...



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