“Employers across all industries, including retailers, make salary offers to new hires based on a variety of factors,” Egee said in a February statement to FN. “These state and local mandates hinder both the employee’s flexibility and the employer’s ability to consider a wide [range] of candidates for a given position.”
Mark Goldstein, a labor and employment lawyer with Reed Smith LLP, told FN in February that the new regulation could also cause a backlash among employers, and encourage them to pursue remote workers living outside of New York City for their positions to avoid compliance with the rule.
“I could certainly see [the new law] having potentially a chilling effect on the hiring of individuals in New York City rather than achieving whatever its stated purpose might be, particularly with the labor shortage, the great resignation,” said Goldstein.