Advocacy: The era of salary openness in New York City unfolds

In a bid to foster greater trust and fairness in the workplace, employers are increasingly embracing pay transparency. This shift towards openness is gaining momentum, particularly in cities like New York, where efforts to enforce salary and compensation transparency have been spearheaded by advocacy groups and local government initiatives.

The state of New York City is leading the charge, with legislation requiring salary ranges in job postings. Four years ago, the city passed its first pay transparency law, marking a significant step towards achieving pay equity. However, employers in the city are not yet obligated to disclose the salaries of employees in the same role.

The Society for Human Resource Management (SHRM) has conducted research that suggests this transparency could be a game-changer. According to their findings, 70% of employers who post pay ranges receive more applicants, and 66% report that pay transparency increases the quality of applicants. Moreover, most workers now refuse to apply for a job without a posted salary range.

The push for pay transparency is not just about attracting top talent. It's also about addressing the persistent wage gap, particularly for women and people of colour. Decades of discriminatory practices have meant that women and minorities often start from a lower baseline salary and have less leverage to negotiate. This wage gap, if left unchecked, can result in significant financial losses over a career. For instance, over a 40-year career, Black women could potentially lose $1,131,000 due to the wage gap.

In an effort to address this issue, the New York City Council is being urged to pass Introduction 808, a bill that would allow current employees to request the pay range for their position. If passed, this bill would also require employers to disclose benefits, bonuses, stock options, and equity stakes.

The fight for pay equity is not limited to New York City. States like Colorado, California, Connecticut, Massachusetts, and Rhode Island require disclosure of pay ranges to existing employees. Moreover, several states, including Illinois, Maryland, and Minnesota, mandate disclosure of benefits and other forms of compensation.

However, the journey towards pay equity is far from over. Sustained pay disparities in New York City often favor white men, overcompensating them based on stereotypes. Pay secrecy encourages pay disparities based on negotiation skills rather than qualifications. Openness about pay can help organizations recruit, retain, and engage the strongest workforce possible, thereby building a more equitable and inclusive society.

The wage gap is not just a financial issue; it's a social justice issue. By advocating for pay transparency, we are not just striving for fairness in the workplace, but also for a more equitable society where everyone has the opportunity to thrive.