LABOR

The mental or physical effort exerted in order to achieve a result. 2nd Story uses the word “labor” synonymously with “work.”

Living Wage

A living wage is the pay amount that an individual must earn to support themselves (and their families). Living wages typically assume full-time employment and can vary by location.

Arts administrators, especially those not in leadership positions, are often compensated less than a living wage. The Los Angeles Department of Culture and Arts recently published a study called Make or Break: Race and Ethnicity in Entry-Level Compensation for Arts Administrators in Los Angeles County. The study found deep discrepancies between wages of Black, Indigenous, BIPOC, and white arts administrators. For entry-level positions, all identity groups “were found to have annual earnings lower than a living wage for LA County.”

As of 2023, according to the MIT Living Wage calculator, the living wage in Chicago, Illinois is $18.72* for 1 adult with 0 children.  It’s important to note that 1099 workers - which includes the majority of artists - are not required to meet minimum wage standards, and compensation for artistic work is often far below the Chicago living wage. 

It’s equally important to note that, while the MIT Living Wage calculator is a helpful tool, it’s also fallible. As you’re looking at the calculator, scroll down to “Typical Expenses.” How do those totals compare with your own expenses? Are the numbers for rent or healthcare, for example, similar to your own?

Minimum Wage

A minimum wage is the lowest legal hourly pay that someone can be compensated according to federal, state, or local law. On July 1, 2021, a $15 hourly wage was implemented in Chicago, IL.

Pay

2nd Story defines pay as money given to an individual by a company, organization, or other entity in exchange for labor. This can include salaries, wages, stipends, honorarium, overtime, bonuses, commissions, vacation and holiday pay, insurance, and other similar benefits.  

PAY EQUITY**

2nd Story uses the following definition from SHRM when defining pay equity: 

Pay equity includes issues relating to the fairness of compensation paid by employers to individuals or groups of employees. To effectively recruit and retain employees, an organization must have internal equity, where employees feel they are being rewarded fairly based on performance, skills and other job requirements. Organizations must also ensure external compensation equity with employers competing for talent in the same labor market. Understanding the legal obligations regarding pay equity allows HR professionals to evaluate the lawfulness of their organization's pay practices and identify necessary corrective action.

We recognize that equitable pay looks different at every organization and is based on a variety of factors. For instance, pay equity at a theatre with a $10M+ budget will look very different from pay equity at a theatre with a $100K budget.

Pay Gap

2nd Story defines “pay gap” as the difference between the average compensation of one identity group when compared to another identity group. The most commonly known example is the gender pay gap, which compares the differences between average compensation for men and women. These differences are typically evaluated across industries or job types, and may or may not take other factors into consideration when compiling data. Such factors could include:

• Economic sector 

• Job level

• Experience level

• Company

• Job title or classification

• Tenure

• Individual identity

Pay Transparency

Pay transparency is the practice of sharing, openly and explicitly, any information around compensation or benefits. It’s the ongoing practice of communication. Pay transparency can manifest in a few ways:

• Eliminating secretive or outdated compensation policies.

• Clear structure and strategy around compensation programs and plans.

• Informed discussions about the value of labor.

For contracted artists, 2nd Story provides stipend, rate of pay, and expected hours of commitment in every offer or job posting. For arts administrators, our job postings include salary and benefit information. Current employees revisit benefit and salary information at minimum, annually, and the 2nd Story staff is engaged in ongoing dialogue about providing more robust compensation as the organization continues to grow. 

Thriving Wage

We believe the idea of a thriving wage is the antithesis of the suffering artist myth, and so a thriving wage is one that allows people to prioritize rest, well-being, work-life balance, and caretaking. Thriving means being able to afford going to the doctor when sick, support a family, purchase property, or pursue travel. 

Frankly, there is no single magic number here. This is where the radical imagination of our community comes in - what does it mean to not only live, but to thrive? We expect this definition to evolve and change as our work continues.

Wealth Gap

The wealth gap is the unequal distribution of economic resources. Those economic resources can include wages, homes, automobiles, personal valuables, businesses, savings, and investments. Overall wealth evaluates these resources against any debt or liabilities.