Salary Transparency Laws: A Win-Win for Employers & Candidates in NYC and Beyond.

NYC Human Rights Law took a bold step toward pay equity in November 2022, requiring all New York City employers to include salary information on job advertisements. This law, and others like it around the country, seeks to end wage disparities while providing the transparency candidates will need to make informed career decisions.  Monster requires all ads for jobs in NYC comply with the NYC requirement and, more generally, requires that job ads comply with all applicable laws, including salary transparency requirements.

If you think you’re exempt, think again.

The laws on salary transparency are trending on a national scale – impacting employers and candidates beyond New York’s borders as well.  Laws that require salary disclosure in job ads are already in effect in California, Colorado, Hawaii, New York, and Washington– and more are on the way.

As Washington, D.C., Maryland, Illinois, Minnesota, and Vermont join the pack in the coming year, CNBC reports an estimated 1 in 3 workers will be impacted by pay transparency laws by 2025. Employers must keep watch as new laws and regulations may impact how they promote their jobs today and in the future.

Every state is different.

New York City now requires employers with at least four employees to provide a pay range on all job advertisements – including those for internal promotions and transfers. The penalty for nondisclosure can result in new company policy mandates or training and hefty payouts to the tune of up to $250,000 for unresolved noncompliance and, in some cases, paying damages to compensate affected employees.

Other states don’t require the salary on the job ad but insist on disclosure at an applicant’s request or before discussing compensation. Transparency around additional compensation, like bonuses and benefits, has been popping up, and many states are beginning to ban direct salary history requests, along with third-party discovery, that may influence the salary that’s ultimately offered.

Many employers who hire across the country are overcoming the complexity by providing salary information in every state they hire – whether it’s required or not. Although this strategy helps employers maintain compliance, it also offers many additional benefits within the hiring process.

Salary transparency is a good thing – for everyone involved.

The results are in, and whether you see pay transparency as a benefit or a hindrance, leaving out the most crucial consideration of gainful employment is fast becoming a thing of the past. Monster has been seeing positive outcomes for both camps:

  • Employers can attract a wider pool of qualified candidates – 66% find that including salary increases applicant quality.1
  • Candidates will be more likely to apply for a job if salary is disclosed. In fact, 82% of US workers are more likely to consider applying for a job if the pay range is listed.1
  • Employers can focus their time solely on applicants who would accept the listed salary (naturally turning away those who wouldn’t).
  • Candidates with access to salary information can quickly gauge if the opportunity aligns with their career level, skills, and experience.
  • Employers will establish credibility and trust at the start of the candidate experience – enhancing their reputation and employer brand.
  • Candidates can easily rank job opportunities – 59% would prioritize a good salary over health insurance and retirement plans.2
  • Employers & Candidates can align salary expectations from the start, saving both parties time in the negotiation process.

There’s no doubt that, even in its infancy, pay transparency has shown value on both sides. Some experts have even surmised that it may slow turnover as it sets solid salary expectations for candidates and current employees. Only time will tell as new legislation continues to roll out nationwide.

Employers are relying on Monster.

To support employers through the inevitable changes, Monster has been hard at work:

  • Salary recommendations based on the job title and location are provided within the Monster+ job ad setup to guide employers with real-time market data.
  • Monster’s Salary Calculator can assist with payroll planning and help your company meet potential hires’ salary expectations.
  • Pulling together data from Monster’s extensive global surveys and industry pros’ unique perspectives, Monster’s e-books and Reports library has captured today’s recruitment landscape to a tee. From recruiting for the generations to building gender equity to a recruitment survival guide, insights run the gamut.
  • To keep employers informed, Monster’s Resource Center offers several articles on compensation strategy, including salary benchmarking, attracting the emerging workforce, and salary considerations for remote workers.
  • Whether you can “wow” potential applicants with a stand-out salary or not, Monster’s job description templates can help craft an impactful job ad that appeals to candidates.

Working toward a bright, equitable future.

Unsurprisingly, salary is a primary consideration of a candidate’s job search. In fact, 43% would pull out of the hiring process if salary wasn’t disclosed during interviews.2

What is surprising is that despite the competitive advantages pay transparency laws have brought to light—such as increased applications, improved applicant quality, positive employer brand development, and more efficient salary negotiations—many unimpacted employers continue to keep salary numbers close to the vest.

As the number of laws on salary transparency continues to rise, ushering in a new era of fairness, affected employers are realizing the need to adapt to the changing labor market and define what compliance means for them. In this journey, Monster is steadfast in providing the necessary support and resources to help employers stay competitive and compliant as new legislation sweeps the nation.

Stay informed – bookmark our pay transparency site for polling results, salary legislation maps, and more.

1SHRM 2023; 2Monster’s 2024 State of the Graduate Report