New laws in California and Washington state have taken effect this year that will require employers to post salary ranges on job listings. Similar laws are already in place in the states of Colorado and New York. New York and California are major employment hubs for big companies and this will effect millions of future employees during their hiring process. Job candidates will now hold significantly more power in the world of pay negotiations. Some companies moved quickly to add pay ranges to job listings in New York as others feared the ranges may seem to low for candidates.
Others companies are simply not adding the pay ranges, unafraid of the fairly weak enforcement mechanisms for the law. According to Axios, As of Dec. 4, 61% of NYC listings on Indeed.com included salary information, up from just 27% a month before the law change. Updating listings also takes time and human resource and payroll teams are already burnt out from the strains of a COVID effected workplace.
Lastly, companies are also worried that if a recession hits, they’ll have to lower the ranges.
