The Pay Equity law in New York City is set to go into effect on May 15th, this is great news, right? Evidently not for everyone.
Already there are several groups trying to amend or postpone the law with the claim this will only hurt equity efforts that are already ongoing. Mind you the gaps have gotten worse in NYC in recent years. The average woman in New York makes 86 cents for every dollar a man makes, down from 89 cents in 2015. Personally, I am not buying pay equity and transparency laws are a bad thing BUT will buy companies are struggling with how to deal with communicating and resolving exposed issues and how to gather and report data moving ahead while maintaining compliance to a moving target.
Transparency has proven effective at addressing the wage gap and giving employees an idea of what their work is worth. A two-decade-long study of 100,000 academics found that universal access to pay information reduced the gender pay gap by up to 50%. Having the all the reward data at hand in real time allows companies to identify issues, resolve them in an ongoing fashion, and properly communicate via a complete Total Rewards Statement.
Here is a link to a recent article around from Forbes (https://www.forbes.com/sites/kimelsesser/2022/04/06/nyc-pay-transparency-in-limbo-as-businesses-claim-law-may-hinder-diversity-efforts/?sh=5a7555e83b27
) on the subject. Every time I see the Pay Equity stats across the multiple lenses, I am saddened yet optimistic about the future resolution of the issue.
While I am definitely not the person to help companies or communicate (I obviously struggle myself writing!) explain any prior issues with pay equity, I am stoked uFlexReward is at the front of the technology movement with a focus providing the required platform to make the gathering, analysis, and modeling tool necessary to make it all happen.
Of course, now the question is will there be a change or delay to the law by May 15th or will change begin in the Big Apple?