Will pay transparency put us a step closer to closing the racial wealth gap in America?
Pay transparency is gaining momentum. Soon, there just may be pay transparency across the board. As of November 1, 2022, most employers in New York City must list the salary range on all posted job ads, promotions and transfer opportunities. It applies to any position that can or will be performed, in whole or in part, in New York City, whether it’s done from an office, in the field or remotely from the employee’s home.
To date, disparities in pay plague the workforce, with women earning 83 cents for every dollar a man earns, and black men earing 87 cents for every dollar a white man earns, putting them at less money on the dollar than men of any other race.
Unfair pay practices are one of the many factors that contribute to the racial wealth gap in the United States. If an individual isn’t paid fairly, their primary source of building wealth – making money – is crippled and makes it challenging to accumulate money and assets.
The recent passing of the New York law was not the first of its kind. Since January 2021, Colorado has had a similar pay transparency law requiring the disclosure of salaries, however, companies have circumvented this by preventing Colorado residents from applying for the jobs they post. Following the recent action in New York, some large companies, including Citigroup and Macy’s, have followed, with others like Google and IBM planning to do so in the future. Starting January 2023, California, Rhode Island, and Washington will require companies to list salaries in any job posts.