As Hire Image previously reported, soon after New York City’s Pay Transparency Law went into effect on November 1st of last year, requiring companies to include a good faith salary range in job postings, some figured out ways to remain compliant while getting “creative.” Posted jobs includes salary ranges from $50,000 to $145,000, from $106,000 to $241,000, and even $0 to $2,000,000 (which was later claimed due to a computer glitch).
Now, as more pay transparency laws go into effect across the country, more companies seem to be following in those footsteps. For example, the pay range for a database engineer at Apple in Cupertino, California was recently listed between $130,000 and $242,000; a business analyst position at Tesla in Palo Alto, California was listed at $68,000 to $234,000; and a software engineer at Netflix in Los Gatos, California apparently gets paid somewhere between $90,000 to $900,000, according to the company’s website (a range of $810,000).
With more jurisdictions imposing pay transparency laws, some appearance of rationality and good faith will have to prevail. It often comes down to what companies would “reasonably expect to pay” for that position in that geographical area (an important distinguishing factor). Another factor that could be causing these huge ranges, according to Emily M. Dickens, Chief of Staff and Head of Public Affairs at SHRM, The Society for Human Resource Management, is that most employers are adding up everything they offer, including benefits and other perks (not just base salary) to be more competitive in the overly saturated job market.
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Have any questions? Hire Image can help. Contact us if you have any concerns about how these types of pay transparency laws impact your own background screening practices.