New York City is entering an era of open financial disclosure in the workplace, according to an opinion piece.

In the heart of New York City, a significant wage gap persists between Black women and white, non-Hispanic men. According to recent data, Black women make 63 cents for every dollar earned by their male counterparts, resulting in a staggering loss of over $1 million over a 40-year career.

This disparity, in part, is attributed to the lack of transparency in salaries. Currently, employers in New York City are not obligated to disclose the salaries of employees in the same role. This veil of secrecy contributes to the perpetuation of the wage gap.

Recognising the need for change, the New York City Council has proposed legislation known as Introduction 808. This bill aims to address the issue by requiring employers to disclose benefits like health care, paid family leave, and other forms of compensation such as bonuses, stock options, and equity stakes.

The proposed legislation builds upon years of advocacy from organisations like PowHer New York's Equal Pay Campaign and Legal Momentum. It aims to level the playing field by promoting fairness and equality in the workplace.

The benefits of pay transparency are far-reaching. The Society for Human Resource Management (SHRM) found that 70% of employers who post pay ranges receive more applicants. Moreover, 66% of employers report that pay transparency increases the quality of applicants.

Transparent pay practices also help to eliminate pay disparities based on negotiation skills rather than qualifications. Without pay transparency, inequities compound year after year, cutting into lifetime earnings and retirement savings for women and people of colour.

Four years ago, New York City passed its first pay transparency law, requiring salary ranges in job postings. Now, the Council is taking it a step further by allowing current employees to request the pay range for their position, a move that is currently in the implementation phase with guidelines being developed for enforcement.

Employers have reported that pay transparency makes them more competitive in attracting top talent. It also builds greater trust with current employees. Colorado, California, Connecticut, Massachusetts, and Rhode Island have already implemented similar requirements for their states, with Illinois, Maryland, and Minnesota mandating disclosure of benefits and other forms of compensation.

The proposed legislation, if passed, could mark a significant step towards addressing wage inequity in New York City. It is a testament to the city's commitment to fostering a fair and equitable work environment for all.