New York City Wage Law Protects Workers

New York City’s new wage law will have a very positive effect on employees being paid fairly within an organization. It will then roll across the country, and I think that is great!

Here’s a simplified understanding of the law. Employers must show the wages of all employees within a work group. For instance, you have three secretaries in your office. They are paid $22/hr., 22.25/hr. and $18.75/hr.  They all have roughly the same seniority.  Then, why is one paid 18.6% less than another?

Is there a valid reason? Or is it discrimination? In most cases investigated by the NYC labor department, discrimination was found. However, the people involved didn’t know what management had done.  The new law will allow a person to ask management: Why? What will we do to make it fair?

The pay would be valid if two people had been there for four years and one for six months. Or maybe one doesn’t have the computer skills of the other. But, if there is discrimination, the owner of that business is in line for a big penalty.

It benefits your company to pay folks somewhat equal wages for equal experiences and work output. Sure, you can keep it a secret for about three months. Then people begin to share information with new hires–maybe not purposely, but things get said over lunch or when sharing a coffee break.

This may also help you in hiring. If applicants are looking for a certain salary range and you fit their needs, you will get resumes more in line with what you have to offer.

Employers and managers: ask your bookkeeper to give you everyone’s salary by their work department. Include their hire date on the request. If you find a glaring error, correct it now before your community enacts this law.

Or, don’t do it. And ask yourself why you didn’t when you find yourself in front of a judge on a discrimination lawsuit.