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I am really not understanding.
How does this hurt businesses?
As noted by another poster it interferes with a business paying an employee what they believe are worth.
The whole idea that women earn less over their careers thanks to discrimination has been disputed well enough. No, females earn less because they keep leaving to have babies and other personal reasons. Women with children often choose career paths/jobs that allow them to care for their children knowing they will earn less or whatever.
Other reasons include persons who just aren't good employees and or have other issues. Some people show up every day ready to earn/produce, are team players, always willing to do what it takes to get a job/project done and so forth. Others simply show up and do the minimum required assigned work. This all shows in yearly evaluations and salary increases/offers. If you sat like a bump on a log in your previous and got $55K per, why should another employer have to give you $75K?
One of the reasons many employers don't like unions is because it takes away rewarding/giving incentives to the best. In a union shop everyone gets the same money both good and bad workers.
^
It's a way of forcing them to pay higher salaries then they otherwise would. If they know how much someone made previously, they can base their salary offer on what they think the person would take to change jobs. Without knowing that, they have to guess what it would take, and would likely have to guess high.
But moreover, it's just another way the government is improperly injecting itself in the employer / employee relationship, and in a what that isn't particularly common. So if businesses are looking at where they want to open locations, it's a disincentive to open in NYC.
How will businesses be forced to pay higher salaries?
It's just simple supply and demand
Businesses will not offer too much salary if it hurts their bottom line and makes them unprofitable
Businesses already know what the market rate for a employee is. Based on their current employees salaries
If they offer something too low and no one bites then they need to offer more salary until someone takes the job
A business can offer any amount they choose. So nobody is forcing them to overpay.
What the law does is provide the potential employee with some degree of privacy, a commodity in short supply these days.
A business can offer any amount they choose. So nobody is forcing them to overpay.
What the law does is provide the potential employee with some degree of privacy, a commodity in short supply these days.
Wage information is not *private* per se. You can go to any number of public sources for instance and look up current to date wage and or pension information for any NYS or local New York government employee. This goes for both union and no.
A business can offer any amount they choose. So nobody is forcing them to overpay. What the law does is provide the potential employee with some degree of privacy, a commodity in short supply these days.
Well the business wants to minimize payroll expense. A person coming off a 35K salary will be very happy to take a 40K salary, but the employer may have to offer 45K not knowing they were previously underpaid. That's all well and good for the new employee, but that person may have been underpaid because of low job performance, so there is discovery in that prior number.
How much is the new fine for asking about prior salary by the way
Well the business wants to minimize payroll expense. A person coming off a 35K salary will be very happy to take a 40K salary, but the employer may have to offer 45K not knowing they were previously underpaid. That's all well and good for the new employee, but that person may have been underpaid because of low job performance, so there is discovery in that prior number.
How much is the new fine for asking about prior salary by the way
With most experienced professional salary jobs, a thorough interview process by multiple managers can weed out any underperformers or bull****ters.
Plus when HR sees someone who was paid in the lower end of the salary band for a job, they don't think underperformers, they see $$ signs, since it will save the company money, and they'll get a pat on the back for pushing the candidate through hiring process.
With most experienced professional salary jobs, a thorough interview process by multiple managers can weed out any underperformers or bull****ters.
Plus when HR sees someone who was paid in the lower end of the salary band for a job, they don't think underperformers, they see $$ signs, since it will save the company money, and they'll get a pat on the back for pushing the candidate through hiring process.
Oh I don't know about the last part.
It may be possible through interviews and whatever to determine if someone being paid on the low end of scale was "shafted" or just not a good performer. But sometimes it is a toss up; hence many new hires come with a probationary period.
This being as it may someone who has been in the same position and or doing the same job for a good length of time, *and* is still at the lower end of wage scale tells me at least something is going on in the background. Either they aren't motivated (for various reasons) to do better, or maybe their performance is lacking.
Employment market runs on some predictable activity. Normally good performers know what they are worth, and if current employer won't meet their number pack up and move elsewhere. This leaving aside periods of economic turmoil or whatever that means making a move could be risky, and or nothing else is open.
It is also widely known that unless a place goes totally bankrupt and shuts down, during bad economic times companies use that as an excuse to shift dead weight.
Well the business wants to minimize payroll expense. A person coming off a 35K salary will be very happy to take a 40K salary,
Why would someone leave a job for a $5K pay increase?
I never understood that.
I would never leave for such a small raise in any case.
I'd need close to $10K more to get me to think about leaving a job.
Why would someone leave a job for a $5K pay increase?
I never understood that.
I would never leave for such a small raise in any case.
I'd need close to $10K more to get me to think about leaving a job.
Much would likely depend upon conditions on ground so to speak.
Have known persons who pretty much were locked in a battle with management/employer. The latter wanted them to go, and the former wasn't doing so without a good reason. This includes employees that were written up and or on probation that seemed never ending.
When on probation you don't get raises or anything else.
So things often end up at a stalemate. Employer is just looking for a good reason/right time to terminate, but wanting to avoid a lawsuit and perhaps paying unemployment is just biding their time and writing everything down. Employee knows (or should know) what is going down but is dug in for the duration pretty much saying "give me my money".
Now a smart employee in such a situation is also looking for another gig. It becomes apparent after that probation isn't lifted and or keeps being reinstated they aren't going anywhere with said employer, best to move on and start fresh somewhere else. If they can get a small wage increase at their new job then so much the better.
Now for someone who is not in such a situation and producing, then yes, a 5K raise alone is scarcely a reason to move jobs. That is unless other things are at play. Maybe the current job is dead end. Maybe the new one offers a shorter commute/is closer to home.
I can see many hirees abusing their rights and taking advantage.
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