A New York City pay transparency law that will go into effect this Spring will require companies to reveal salary ranges on job postings. Supporters of the legislation say it could help close the gender wage gap.

Although the gender pay gap has narrowed since the signing of the equal Pay Act of 1963, according to 2020 data from the Bureau Labor of Statistics, women earn 82 cents for every dollar a man earns. The gap widens even more for women of color. 

The bill was initially approved by a 41-7 vote in the City Council on Dec. 15. It officially became law on Jan. 15, when Mayor Eric Adams declined to either sign it or veto it.

The law, which will be enforced beginning on May 15, applies to companies with at least four or more employees. Companies that post job openings must note the minimum and maximum salaries based on a “good faith” determination at the time of the posting.

The new pay transparency law makes it an “unlawful discriminatory practice” under the New York City Human Rights Law (“NYCHRL”) for an employer to advertise a job, promotion, or transfer opportunity without stating the position’s minimum and maximum salary in the advertisement.

Firms that refuse to comply could be charged fines of up to $125,000 or other civil penalties. 

Supporters say that the law is needed to shrink the pay inequality gap, but pro-business advocates have argued that it is another example of government overreach. 

Kathryn Wylde, chief executive of the Partnership for New York City, told The Wall Street Journal that the measure adds to the perception that New York is unfriendly to business. 

“It’s just the wrong solution. It should never have been allowed to go through,” she said. 

The Partnership is urging the city to delay implementation of the law. 

New York City lawmaker Joe Borelli, who represents Staten Island, feels the same way. 

“This is one of those laws that was pushed through in the name of equity or economic justice, but in reality it won’t help either job candidates or employers,” he told The Washington Street Journal.

On the other hand, Helen Rosenthal, the former City Council member who sponsored the bill, told CNN that the new legislation “shines a light on pay inequity.” 

“Including pay ranges in job postings allows job seekers to determine whether they will be able to support themselves and their family when they apply for a job,” Rosenthal said. 

Beverly Neufeld, president of PowHer New York, a nonprofit focused on economic equality for women that worked with Rosenthal on the legislation, called it a “concrete step in eliminating the causes of wage inequality.” 

"This transformative law will minimize bias, maximize transparency, shift cultural norms and level the ‘playing’ field," she said in a statement.

The NYC Commission on Human Rights, a group that seeks to fight discrimination and ensure human rights are respected, intends to initially help businesses and employees understand the new law and how to best implement it. 

Sapna V. Raj, deputy commissioner of the organization’s law-enforcement bureau, said in a statement to The Washington Post that the goal is to educate, not to punish. 

“Our immediate goal is not to penalize, but to educate and work together with the city's business community, while still ensuring that individuals who have experienced discrimination are able to receive damages,” Raj said. 

New York is joining other jurisdictions that have passed similar salary disclosure statutes, including California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington State.