Pryor Cashman Partner LaKeisha M.A. Caton, who is a member of the firm’s Labor + Employment and Litigation Groups, spoke with SHRM about the implications of New York State’s new pay transparency law, which mandates salary information in job postings.

In “New York City Pay Transparency Law Takes Effect Nov. 1,” LaKeisha discusses the possibility of the new transparency regulation leading to “pay compression”:

One of the unintended outcomes of the complying with the law may be pay compression. “Pay compression occurs when there is minimal difference in pay between tenured employees and new hires despite differences in their respective knowledge, skills, experience or abilities,” said LaKeisha Caton, an attorney with Pryor Cashman in New York City. The publication of salary ranges might exacerbate the problem of pay compression because employers may feel pressured to offer higher starting salaries to attract strong applicants, while the salaries of tenured employees remain stagnant to balance the increased costs, she said.

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