New York’s salary transparency law comes into force
The New York State salary transparency law officially comes into force on 1 November, a key date for the world of work and for companies - including those linked to the luxury sector - established in New York City.
By Eva Morletto01 novembre 2022
Enacted in January 2022 and subsequently amended this spring, the salary transparency law officially goes into effect, following the development of the legislative package designed in recent months on workers' rights. Employers in New York City will be required to post salary ranges on all job postings, a measure that experts believe could limit the wage gap between men and women.
Knowing the wage conditions offered by competing companies will also allow workers to negotiate contracts more effectively, with higher bargaining margins.
Several US states had already passed salary transparency laws, such as Connecticut, Nevada, Colorado and Washington State. The implementation of this law in New York State is a major step forward, as the importance of companies based in the city, including those operating in the luxury sector, could drive changes far beyond the US borders.
These laws against pay opacity come at a time when the US labour market is tight. Wage transparency could help attract more applicants and reduce gender and minority discrimination.
In Europe, some luxury giants have already taken steps towards more equal salary transparency. As early as 2010, Kering signed the Women's Empowerment Principles charter drawn up by UN Women and the United Nations Global Compact.
In 2022 (June 2022), Kering is ranked 2nd in the Diversity and Inclusion Index published by Refinitiv, among more than 11,000 international companies. L'Oréal is ranked 14th and LVMH 15th. Estée Lauder Companies Inc is ranked 20th and Ralph Lauren Corp is 40th.
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