U.S. - New York - Ithaca pay transparency law guide
Introduction
Effective May 4, 2022, the Ithaca Common Council enacted Ordinance 2022-23, which, in part, requires employers with four or more employees to provide salary ranges on job postings.
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Ithaca Pay Transparency Requirements
Under this law, it is deemed an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise an opportunity for employment as an employee, including a job, promotion or transfer opportunity without stating the minimum and maximum hourly or salary compensation for such position in such advertisement.
The law applies to all positions for which the standard work location will be in the city of Ithaca. The law applies to employers with four or more employees and it does not apply to job advertisements for temporary employment at a temporary help firm, which is defined by Subdivision 5 of Section 916 of Article 31 of the Labor Law.
Employers are required to provide a "good faith" range on all job postings.
The Risks of Non-Compliance
The Ithaca Common Council has not indicated whether penalties or fines will be assessed to employers for non-compliance. However, the law aligns with New York State's pay transparency law, which states that violations are subject to investigation and prosecution by the state commission of labor, with civil penalties set at:
- $1,000 for the first violation
- $2,000 for the second violation
- $3,000 for the third and subsequent violations.
How Can Trusaic Assist with Ithaca Equal Pay Reporting Compliance?
The goal of pay transparency laws is to promote practices that lead to a more equitable compensation environment. Similar to salary history ban laws, requiring pay ranges on job postings promotes fair pay practices and holds organizations accountable.
If implemented thoughtfully and strategically by an organization, pay transparency can promote a better work environment where employees believe they are paid fairly. Providing salary ranges on job postings can also positively narrow the applicant pool and improve the hiring experience.
Absent salary range information, a job candidate could go through a multi-week interview process only to discover the job offer is far below their salary expectation. This wastes the candidate's time and causes financial and reputational damage to the employer.
The task of moving toward full pay transparency can be daunting for an organization.
1. Comply - Use Trusaic's Salary Range Finder to ensure fair and competitive pay at the time of hire:
Salary Range Explainability: Salary Range Finder helps you establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.
2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:
Trusaic's pay equity software alleviates the concern of moving to full transparency by identifying the root cause of pay disparities and remedying them. Additionally, it supports the creation of equitable, compliant job postings and enables a consistent approach to pay range disclosure.
This empowers your organization to execute compensation plans with complete confidence that pay equity is at the center.
OpportunityParity™, a feature of Trusaic's workplace equity analysis software, offers a complete solution for pinpointing and remedying equity concerns in your organization's hiring, promotion, and retention processes.
Drawing from diverse global directives like the OFCCP, EEOC, EU Pay Transparency Directive, and more, it ensures fairness and inclusivity throughout your talent lifecycle, irrespective of geographical boundaries or regulatory frameworks.
How OpportunityParity Supports Your Goals:
- Improves equitable career advancement: Build equity into every aspect of your talent management process, from recruitment to retention.
- Analyzes and improves opportunity equity: Identify and address disparities in hiring, promotion, performance assessment, and retention.
- Helps you achieve workplace equity objectives: Use forecasts to help achieve your diversity objectives and accelerate progress with data-driven insights.
- Builds a culture of trust and transparency: Elevate human capital, bolster people sustainability, and fortify social responsibility metrics by fostering an environment of trust and transparency.
Leveraging Trusaic's workplace equity software suite will help ensure you remain in compliance with Ithaca's pay transparency law requirements.