pay disclosure becoming widespread in New York City, advocating for open wages
In an effort to address long-standing wage disparities, the New York City Council is considering passing Introduction 808, a legislation that would give current employees the right to request the pay range for their position. This move comes four years after the city passed its first pay transparency law, requiring salary ranges in job postings.
According to research by the Society for Human Resource Management (SHRM), 70% of employers who post pay ranges receive more applicants. Employers report that pay transparency makes them more competitive in attracting top talent, and SHRM research also indicates that 66% of employers say pay transparency increases the quality of applicants.
The legislation is supported by organisations such as PowHer New York's Equal Pay Campaign and Legal Momentum. Without transparency, inequities in pay compound year after year, cutting into lifetime earnings and retirement savings for women and people of colour. Women have already lost trillions of dollars in earnings due to pay inequity, and in New York City, Black women make 63 cents for every dollar earned by white, non-Hispanic men, resulting in a loss of $1,131,000 over a 40-year career.
Pay secrecy allows employers to pay based on negotiation skills rather than qualifications. Decades of discriminatory practices mean that women and people of colour often start from a lower baseline salary and have less leverage to negotiate. Most workers now refuse to apply for a job without a posted salary range.
The proposed legislation would require employers to disclose benefits like health care and paid family leave, as well as other forms of compensation such as bonuses, stock options, and equity stakes. This would build greater trust with current employees and contribute to a fairer and more equitable workplace.
Several states, including Colorado, California, Connecticut, Massachusetts, and Rhode Island, already require disclosure of pay ranges to existing employees. Meanwhile, Illinois, Maryland, and Minnesota mandate disclosure of benefits and other forms of compensation.
Employers in New York City are not required to disclose the salaries of other employees in the same role. However, the lack of pay transparency is one of the main reasons the wage gap has persisted in the city. By passing Introduction 808, the New York City Council aims to take a significant step towards combating wage inequality and promoting pay transparency.
