Implications of the New York and California Transparency Laws on Workers in Tech

data science news ethics bias + integrity pride + inclusion salary negotiation + research Nov 01, 2022
green road sign stating salary increase just ahead (with cash in the background)

The New York and California pay transparency bills are about to take effect, and they are going to have a huge impact on data science, machine learning, and artificial intelligence professionals. These laws will require companies in New York and California to disclose the salaries of all employees, from the CEO down to the most junior intern. If you are working in tech and especially in the high-salary roles of data science, machine learning, and artificial intelligence, and advanced analytics - you need to be aware of these new laws and what they mean for you.

For one thing, the pay transparency laws are going to make it a lot easier for employees to negotiate higher salaries. If you know what your colleagues are making, as this law will permit, you will be able to make a much stronger case for why you deserve a raise.

There is also going to be more pressure on companies to pay workers fairly since they will be required to disclose everyone's salaries. This could mean that data science, machine learning, and artificial intelligence professionals in New York and California will start to see their salaries go up.

Let's take a look at the possible implications of this law:

A Good Development?

Altogether, the New York and California pay transparency laws are a good thing for data science, machine learning, and artificial intelligence, and advanced analytics professionals. The advantage that you will have in salary negotiations is unprecedented. Additionally, demographics, who have historically been paid less than their counterparts will have a very clear justification for a salary increase.

The Spill-Over Effects

The laws passed in New York and California are likely to inspire similar legislation in other states throughout the country. So, even if you do not live in New York or California, these new laws could still have an impact on your salary.

If you are a tech worker, keep an eye on these developments and be prepared to ask for a raise when the time comes. If you are looking for help on deciding when and how to pursue a raise, consider seeking the advice of a well-versed career services professional.

Low Ball Job Offers

Another seemingly good thing about the NY and CA transparency laws for workers in tech is that it will make it difficult for companies to lowball job offers. In the past, some companies would take advantage of the secrecy throughout the tech world. Confidentiality clauses and the uncertainty that surrounds them shielded employers from the transparency that these statutes bring. With the pay transparency laws in place, it will be much harder for companies to get away with this.

As a job seeker in data science, you will be able to easily identify what the average salary is for your position in New York or California. And if a company offers you a salary that is below the average, you will know that you are being lowballed and can negotiate accordingly.

Downsides, Bad Developments?

The New York and California pay transparency laws could also have some negative implications. This sudden transparency could be an upset for employers and employees potentially creating tension in the workplace.

If companies know that they will have to disclose the salaries of all their NY and CA employees, they may be less likely to hire data science, machine learning, and artificial intelligence, and advanced analytics professionals from those states. An unanticipated side-effect could be that workers in New York or California are temporarily stalled in in-state job searches.

What Does the Future Hold?

Although the New York and California pay transparency laws are commendable, further action is necessary to achieve genuine pay equity. For one thing, the laws only apply to companies with more than five employees. So, small tech startups will not be covered by the laws.

Additionally, the laws only apply to workers who are employed by a company. So, if you are a freelancer or contractor, the laws will not apply to you. This could create a two-tiered system in which some data science, machine learning, and artificial intelligence professionals are protected by the pay transparency laws and others are not. A good number of data science, machine learning, and artificial intelligence professionals are freelancers, so the pay transparency laws will not have a major impact on them.

And finally, the New York and California pay transparency laws only apply to workers in New York and California. So, if you are a tech worker in another state, the laws will not apply to you.

Overall, the New York and California pay transparency laws are movements in favor of progress. However, there is still more work to be done in order to achieve true pay equity. These laws are a good start, but they are not the end of the story.

The recent New York and California pay transparency laws are a huge event for tech professionals. Your career could be impacted by these changes, so it's important to understand both the good and bad aspects of the law. Be prepared to negotiate your salary using the New York and California transparency laws as ammo, but also be aware of the potential negative consequences of these changes.

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