The New York City Council has passed a salary transparency law in response to the city’s dramatic cost-of-living increase over the years, requiring NYC employers to include the salary of their jobs in the listing itself. The cost of living in NYC has continued its rapid rise over the last few years, leaving many residents to wonder if they can still afford to live in the city. Manhattan in particular has seen basic costs skyrocket, with a 13 percent increase in the average cost of rent compared to this time last year, as reported by Zumper.

New York City’s salary transparency law officially took effect on Nov. 1, requiring virtually all businesses within the five boroughs to include a salary range on job listings and promotions. The goal of this law is to help combat the wage gap, which has become an even more pressing issue for women and people of color due to the rising cost of living. By requiring employers to be fully transparent about their pay practices, the salary transparency law encourages businesses to rethink their hiring and pay procedures to ultimately avoid discrimination.

Similar laws have been passed and implemented in other parts of New York State, including Westchester County and the City of Ithaca. Colorado and California also have introduced laws regarding salary transparency, with Colorado having enacted the first one in 2021 and California’s law set to take effect in January 2023.

Many employers viewed the law as a step in the right direction because the inclusion of salaries in job postings is likely to draw in more applicants since they are given an accurate idea of how much they are likely to earn. In addition to the anti-discrimination benefits, this makes financial planning and confidence in fair compensation easier for potential applicants.

Some companies have set broad ranges that fail to offer an accurate scope of how much the average worker in the listed position would actually earn. For example, Citigroup listed multiple jobs with a salary range of $0 to $2 million. More commonly, postings have included wide ranges such as $50,000 to $150,000.

Students at the University who are either currently in the job market or who will be entering the job force upon graduation are impacted by this new law. “The transparency law will help me filter through jobs more swiftly. It will be easier to find jobs I’m interested in because more information is provided,” said University Sociology and Anthropology junior Kendall Carney, “However, I can also see this creating a more competitive environment in an already competitive application process.”

The salary transparency law also gives individuals greater insight into what they are actually capable of earning with their skill set. Negotiating for higher wages in certain positions will likely be easier as a result of this law. As stated by a senior Film and Screen Studies major who wished to remain anonymous, “I think it creates awareness for people applying for jobs in order to negotiate higher wages. Most people don’t even know that they can negotiate their pay or sometimes they don’t know they’re being underpaid.”

This new law is a step in the right direction for closing the wage gap and helping New Yorkers plan ahead financially, while ensuring they are fairly compensated. However, the issues surrounding inaccurate postings and creating an even more competitive job market need to be addressed in order for the benefits of the law to be maximized.