Advocacy: Unveiling the Era of Open Salary Information in New York City

In the heart of one of the world's financial capitals, a persistent issue has long been a concern: pay inequality. Decades of discriminatory practices have left women and people of colour starting their careers with lower baseline salaries and fewer opportunities to negotiate. Without transparency, these inequities compound year after year, cutting into lifetime earnings and retirement savings.

The wage gap is strikingly evident in New York City, where Black women make only 63 cents for every dollar earned by white, non-Hispanic men. Over a 40-year career, this translates to a loss of $1,131,000. This disparity is not just an economic concern; it's a social justice issue.

To address this issue, the New York City City Council is actively debating the implementation of wage transparency legislation. Proposed measures focus on requiring employers to disclose salary ranges in job postings and to provide pay information upon employee request. Such transparency is supported by groups like PowHer New York's Equal Pay Campaign and Legal Momentum.

The benefits of pay transparency extend beyond combating inequality. Employers report that transparency makes them more competitive in attracting top talent. In fact, 70% of employers who post pay ranges receive more applicants, and 66% say it increases the quality of applicants.

Moreover, pay transparency builds greater trust with current employees. Most workers now say they will not apply for a job without a posted salary range, indicating a growing demand for transparency.

However, the current pay transparency law in New York City only applies to job seekers, not those already employed. To bridge this gap, Introduction 808, a bill currently before the New York City Council, would give employees the right to request the pay range for their position. The bill also requires employers to disclose benefits like health care, paid family leave, and other forms of compensation.

New York City is not alone in this movement. Several states, including Illinois, Maryland, and Minnesota, mandate disclosure of benefits and other forms of compensation. Colorado, California, Connecticut, Massachusetts, and Rhode Island require disclosure of pay ranges to existing employees.

The Society for Human Resource Management (SHRM) has found that pay transparency is not just good for employees, but also for employers. By promoting fairness and eliminating pay disparities based on negotiation skills rather than qualifications, pay transparency can help businesses attract and retain top talent.

As the city strives to lead the way in social and economic justice, it's crucial that New York City does not lag behind other states and cities in implementing pay transparency laws. The potential benefits—for both individuals and businesses—are too great to ignore.