A much-anticipated law in New York City and similar measures by states may spur greater pay transparency, but some legal industry observers say the laws won’t have widespread impact at firms, where entrenched compensation practices have fueled pay inequities for women and attorneys of color.
The New York City law, originally set to take effect in May, but now slated for November, requires employers to disclose pay scales for new positions. New York state also has a similar measure pending before the governor
Other cities and states are considering or have adopted similar laws, including in Colorado, Nevada, and Connecticut, bucking trends in the business community to keep pay private. The idea, lawmakers and pay equity advocates say, is that pay gaps stem from the lack of information about what peers get paid.
“The movement toward disclosing salary ranges is really important and creates an opportunity to have a transparent conversation about how compensation is being set,” said Saba Bireda, partner at Sanford Heisler Sharp LLP in Washington, and co-chair of the firm’s discrimination and harassment practice group.
In the legal industry, however, the compensation picture isn’t always as clear, attorneys say. Pay and representation gaps widen as attorneys become more senior, with women falling behind particularly at the equity partnership level. The new pay transparency laws alone won’t easily remedy the structural issues within the legal industry, the attorneys say.
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