Salary Transparency Law

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Nantasha Williams
councilmember | New York, NY

Salary Transparency Law

Idea Category: 2025 Ideas Challenge, Economic Opportunity & Affordability

2025 Ideas Challenge Entry

In 2022, a major step toward wage justice was taken in New York City with the enactment of salary transparency legislation. The law requires all employers with four or more employees to disclose salary minimums and maximums in job postings. This landmark policy addresses long-standing pay disparities—particularly those affecting women, people of color, and low-wage workers—by providing jobseekers with vital compensation information and fostering accountability among employers.

Pay transparency is a low-cost, high-impact tool to address entrenched wage inequality, disrupting the information asymmetry that has historically disadvantaged underrepresented groups in salary negotiations and career advancement. By requiring salary ranges up front, the policy shifts the burden of fairness onto employers and empowers workers to make informed decisions.

The innovation of this policy lies in its simplicity and effectiveness. It does not dictate wages or impose complex regulatory requirements, but instead fosters a culture of openness that drives equity. The potential national impact is significant—narrowing racial and gender pay gaps, enhancing workforce morale, and encouraging private sector participation through voluntary compliance. Highly scalable, cost-effective, and politically viable, the framework requires no new funding streams or extensive bureaucracy and can be tailored to diverse local contexts. Expanding it beyond New York City could advance economic justice nationwide, restore trust in hiring practices, and create a more equitable labor market for all.

Impact or how it will be measured:

The impact of New York City’s salary transparency law has been measured through labor data, third-party reports, compliance tracking by the NYC Commission on Human Rights, and feedback from labor unions, workforce development organizations, and community groups. Within the first year, over 90% of job listings on major platforms included salary ranges, employers began auditing their compensation structures, and jobseekers—particularly from marginalized communities—reported greater confidence and bargaining power during the hiring process.