Employers in NJ face disclosing pay ranges

Laws similar to those in NY, elsewhere weighed

By: Daniel Munoiz
NorthJersey.com
USA Today Network - New Jersey

..... It's one of the most delicate dances of any job search: How much will an employer pay? How much can you ask for?
..... For anyone seeking employment in New York city, the compensation question has gotten a little easier to navigate in recent weeks - and a similar change could eventually be coming to New Jersey.
..... As of November 1, [2022] employers offering jobs in the city must include a wage or salary range with any job posting, along with information on benefits and other compensation. The :salary transparency" law follows the lead of Connecticut, California and a handful of other states.
..... Jersey City and Westchester County, New York, adopted similar measures this year. [2022] and lawmakers in both New York and New Jersey are trying to take the movement statewide. Advocates say the measures even the playing field for job seekers and can help close the wage gaps faced by women and people of color.
..... "Think of going to a grocery store. You don't have to negotiate with the checkout clerk; there's a clear price and you pay the price," said Christopher To, an assistant professor of human resources management at Rutgers university. "With pay transparency, companies are required to make the first offer, and employees can simply walk away of they don't like it.
..... "Will there still be salary negotiation? sure. But you're reducing the 'how much do you want?' dance by making your information public," To said.
..... Connecticut, California, Maryland, Rhode Island and Washington have passed similar measures.

New York pay transparency law

..... Some New York employers have sought loopholes in the first few weeks of the new law. In some cases, job postings have included huge salary ranges - as wide as $2 million, according to a CNBC report. Still, labor analysts say the trend is catching on around the country.
..... Over a third of U.S. job postings now include salary information provided by the employer, according to Maggie Hulce, an executive vice president at job-listing website Indeed.
..... Colorado's pay transparency law took effect at the state of last year. During 2021, activity by job seekers in the state rose 1.5% compared with neighboring Utah, although job postings by employers fell 8.2%, according to a study published in August [2022] by the labor research form Recrutionomics.
..... "Think of the current job search landscape as Zillow but without estimated home prices," wrote Recruitonomics analyst Sam Kuhn. "Not every employer putting out a job posting discloses a salary or wage range publicly/ Job seekers are thirsty for information on pay."
..... The decline in postings, however, highlights one potential downside according to critics: Employers wary of publicizing too much information - to job seekers or competitors - may shift work to other locations.
..... "There are nationwide employers that will advertise positions that will say that if you live in Colorado, do not apply,: said Frank Kerbein, a human resources expert a the Business Council of New York State, a trade group that has opposed such mandates.
..... "If you have a headquarters in Charlotte or Virginia or somewhere else, sought-after employees," eh said, "because I'm not going to get into the business of divulging my compensation range for those people."

A burden for small business?

..... New York City's law applies to companies with at least four employees, including the owner. domestic workers are also covered, as are interns, part-time employees, independent contractors and remote workers.
..... The practice can be a burden for smaller companies without many human resources capabilities, said to, of Rutgers.
..... "Pay transparency adds another step to posting a job, and it may repel recruiters who don't want to post their range," he said. "For larger companies, this shouldn't be as big an issue, as they'll have HR systems in place where pay ranges are pre-determined."
..... Employers in New York City must post "good faith" information on potential compensation, which the city defines as the salary range the employer "honestly believes at the time they are listing the job advertisement that they are willing to pay. "Overtime pay, health care and other benefits don't have to be listed.
..... As of November 12, [2022] 60% of New York job limitings provided salary ranges. among industries, the slowest to comply have been financial services, informatory technology and pharmaceutical and biotechnology companies, at 37% of listings or below, according to a November 18 [2022] study by the jobs site Glassdoor.com .
..... Government and public administration, nonprofit and nongovernmental organizations, and human resources and staffing agencies were the most transparent at 67% or higher.
..... "This may mean enforcing pay transparency will matter more in these higher-salary industries than in lower-wage industries," Glassdoor said.
..... Jersey City's ordinance took effect in April [2022] and forces employers with at least five workers to include a minimum and Maximum salary or hourly wage. Violations can bring fines of up to $2,000.
..... Jersey City Councilman Yousef Seleh, who sponsored the provision, said the city wanted to keep up with New York, to avoid being at a competitive disadvantage for attracting talent/ The ordnance was also introduced around the the time of International Women;s Day, as a way to recognize the wage gap often faced by women.
..... On average, women in the U's, are paid 84% of what men make for the same work or position, the ordinance notes. "Minorities and minority women are paid even less for the same work," it adds.
..... Across New Jersey, New York and Connecticut, the Glassdoor study found, 46% of job postings included pay information as of mid-November, [2022] up from 40% in October.

'Still in its infancy' in NJ

..... "We still in its infancy," Saleh said. More employers need to learn about the requirement, he said, as do job seekers, so "they know that they have every right to ask for the salary range."
..... Two bills in the New Jersey Assembly would require salary transparency in the Garden State, but neither has moved forward since their introduction this spring. [2022]
..... One measure, A4285, would require employers with at least 10 staff members to disclose information in job postings. That would include the salary or hourly pay range, benefits and retirement plan information. The legislation was sponsored by state Assemblywoman Britinee Timberlake, D-Essex.
..... A second measure, A3937, required an employer of any size to spot a wage or salary range and other benefits and compensation.
.... "Workers have power, too, and maybe it's time for them to flex their muscle a bit," said assemblyman Paul Moriarty, D-Gloucester, the bill's co-sponsor. "You should be able to give someone a basic salary guideline of what you would accept for this job and someone that has considerable experience and expertise that they could add."
..... Moriarty said he was unclear if or when the bill might more forward. It was introduced in the Assembly labor Committee in May. [2022]
..... Violations in both bills would carry a $1,000 fine for a first-time offense, $5,000 for a second time and $10,000 per offense thereafter.

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