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.
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’s pay transparency law requirements?
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 unbiased 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® to understand, explain and resolve pay disparities:
Analyze: Trusaic’s pay equity analysis software analyzes compensation and benefits data directly from your HRIS system to uncover pay inequities across gender, race, age, and more. Conduct proactive or compliance-driven analyses to pinpoint disparities, reduce legal risk, and build trust by ensuring unbiased, transparent pay practices across your workforce.
Remediate: PayParity with R.O.S.A. (Remediation Optimization Spend Analysis) helps you remediate pay inequities with precision. R.O.S.A. runs hundreds of simulations quickly to find the most impactful pay adjustments, ensuring your budget is spent where it matters most. Make every adjustment count in your ongoing commitment to unbiased, transparent pay practices.
Prevent: Prevent future pay inequities by addressing systemic root causes and through the continuous monitoring of your pay practices. Use your pay equity analysis to guide salary decisions with tools like Salary Range Finder. Keep progress on track by embedding unbiased pay practices into hiring, promotions, and compensation adjustments.
Leverage Trusaic’s pay equity software solutions to ensure you remain in compliance with Ithaca’s pay transparency law requirements.