NYC legislation aims to narrow gaps in pay by tracking gender, job category, race and ethnicity – Newsday

Report on New York City Pay Equity Legislation and Alignment with Sustainable Development Goals

Introduction: Legislative Measures for Pay Transparency

The New York City Council is set to pass legislation (Introductions 982 and 984) mandating private employers with 200 or more workers to submit annual reports on employee compensation. This initiative is a direct effort to address pay disparities and advance several key United Nations Sustainable Development Goals (SDGs) by promoting transparency and accountability in the private sector.

Alignment with SDG 10: Reduced Inequalities

The legislation directly supports SDG 10, which aims to reduce inequality within and among countries. By requiring detailed reporting, the city targets the reduction of outcome inequalities stemming from discriminatory practices.

• Mandatory Disclosure: Companies must disclose compensation data broken down by demographic characteristics.
• Key Demographics: The required characteristics for tracking and disclosure include:
  1. Race
  2. Ethnicity
  3. Gender
  4. Job Category
• Addressing Intersectional Disparities: The data will illuminate complex inequalities, such as the documented pay gap between white women and women of color, thereby supporting Target 10.3 to ensure equal opportunity.

Advancing SDG 5: Gender Equality

A primary objective of the legislation is to narrow the gender pay gap, a critical component of SDG 5. The collection and analysis of gender-disaggregated pay data are essential for achieving economic justice and empowerment for women.

• Data-Driven Analysis: The legislation mandates an annual “pay equity study” to analyze compensation disparities by gender, identify industries with the most significant inequities, and track occupational segregation trends.
• Context of the Gender Pay Gap: The need for such measures is underscored by ongoing debate and varying statistics regarding the pay gap, with women earning, on average, 84 cents for every dollar a man makes. Studies attribute this gap to factors including:
  • Diverging work experience patterns and time in the workforce.
  • Systemic cultural attitudes and biases, particularly at executive levels.
• International Precedent: The New York City Council notes that similar reporting requirements in Europe have proven effective in reducing the gender pay gap, aligning with global efforts to achieve Target 5.1.

Contribution to SDG 8: Decent Work and Economic Growth

The legislation is a significant step towards achieving Target 8.5 of SDG 8, which calls for equal pay for work of equal value. By making compensation data transparent, the policy encourages fair pay practices, contributing to decent work for all.

• Promoting Fair Compensation: The public disclosure of pay data creates pressure on companies to address and rectify internal pay disparities.
• Municipal Precedent: The city has already implemented similar disclosure requirements for its municipal workforce, extending a proven model to the private sector to foster broader economic growth built on equity.

Implementation and Enforcement: Strengthening Institutions (SDG 16)

To ensure compliance and effectiveness, the legislation establishes a clear enforcement framework, which promotes the development of accountable and transparent institutions as outlined in SDG 16.

• Scope: The law applies to all private employers in New York City with a workforce of 200 or more employees.
• Enforcement Mechanism: A tiered system will be used for non-compliant companies:
  1. Written warnings for initial failure to report.
  2. Fines of up to $5,000 for continued non-compliance.
  3. Annual public disclosure on a city website of employers who refuse to comply, ensuring public accountability.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues directly connected to the following Sustainable Development Goals (SDGs):

• SDG 5: Gender Equality

  The primary focus of the article is the new legislation in New York City aimed at tackling the gender pay gap. The text repeatedly discusses disparities in compensation between men and women, citing statistics like “a woman makes 84 cents for every dollar a man makes.” The legislation’s goal to narrow these gaps by requiring pay transparency directly supports the mission of achieving gender equality.

• SDG 8: Decent Work and Economic Growth

  The article addresses the principle of equal pay for work of equal value, a core component of decent work. By mandating that large employers report on compensation by demographic, the legislation promotes fair employment practices and economic justice. The discussion around factors influencing pay, such as job type, hours worked, and parental leave, relates to creating a fair and productive work environment for all.

• SDG 10: Reduced Inequalities

  The legislation described in the article is not limited to gender. It explicitly requires employers to detail pay data by “race and ethnicity.” The article further supports this connection by noting that “even among women themselves, there is a disparity: white women make more than Black and Hispanic women.” This demonstrates that the policy is a direct attempt to reduce economic inequalities within the workforce based on multiple demographic characteristics.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

• Target 8.5: Achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

  This is the most directly relevant target. The entire premise of the New York City legislation is to address the pay gap and move towards “equal pay for work of equal value.” The article’s focus on requiring employers to report compensation data by gender, race, and ethnicity is a policy action aimed squarely at achieving this target.

• Target 5.1: End all forms of discrimination against all women and girls everywhere.

  The gender pay gap, as discussed in the article, is a form of economic discrimination. The study mentioned, which attributes wage differentials to “a population’s cultural beliefs and attitudes toward women,” frames the issue as a systemic problem rooted in discrimination. The legislation is a tool to expose and ultimately help end this form of discrimination.

• Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory… practices and promoting appropriate legislation.

  The New York City Council’s legislation is a clear example of “promoting appropriate legislation” to “reduce inequalities of outcome.” The outcome in question is compensation, and the inequality is the disparity in pay based on gender, race, and ethnicity. The law aims to ensure more equal economic opportunities by making pay structures transparent.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions and implies several indicators that can be used to measure progress:

• Indicator: Pay gap data by gender, race, and ethnicity.

  The article directly refers to the measurement of the pay gap, citing that “a woman makes 84 cents for every dollar a man makes.” The new legislation mandates the collection of this exact data. The bill requires an “annual pay equity study” that “must analyze whether disparities in compensation exist by gender, race, and ethnicity.” The annual reports filed by employers will provide the raw data to calculate this indicator and track progress over time.

• Indicator: Pay data by job category.

  The legislation requires employers to report pay data broken down by “job category.” This allows for a more nuanced analysis that controls for the type of work being performed, addressing the article’s point that some formulas for calculating the pay gap “control for job type.” This data can be used to measure progress towards equal pay for work of equal value (Target 8.5).

• Indicator: Number of companies complying with reporting requirements.

  The article mentions an enforcement mechanism for non-compliance, including “fines up to $5,000 and ‘annual public disclosure on a city website of those who refuse to comply.'” The number of companies that file the required reports versus the number that are penalized can serve as an indicator of the policy’s implementation and acceptance by the private sector.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: newsday.com