Definitions

Part of our  exploration has required learning or defining our terms.  Below is our current attempt at defining each term—as we continue to learn, we anticipate that our definitions for these terms will evolve.

labor

It’s important to note that the NLRA does not protect

  • Independent contractors

  • Supervisors and managers

  • Public-sector employees

  • Employees with access to sensitive HR data may face restrictions on disclosing others’ pay

The mental or physical effort exerted in order to achieve a result. 

Traditionally recognized forms of labor are the kinds of work that our culture and economy most readily acknowledge and compensate. They can include:

  • physical/manual labor like construction, manufacturing, farming, maintenance 

  • mental/administrative labor like office work, management, bookkeeping, consulting

  • Service labor like retail, food service, healthcare, teaching, caregiving

2nd Story uses the word “labor” synonymously with “work.” We also strive to hold an expansive meaning that includes creative, emotional, and relational labor like storytelling, community building, and the often invisible coordination work that makes art and culture possible.

pay

Pay is the money given to an individual in exchange for their labor. This can include salaries, wages, stipends, honorarium, overtime, bonuses, or commissions

2nd Story defines compensation as the full package of what an individual receives in exchange for their labor. It can include pay, but also may include benefits like health insurance, paid time off, retirement contributions, resource sharing, professional development, technology (like phones or computers for work), or other perks and support.  

compensation

pay equity**

**We want to take a moment to outline the difference between Equal Pay and Pay Equity. The U.S. Equal Employment Opportunity Commission (EEOC) “requires that men and women be given equal pay for equal work in the same establishment. The jobs need not be identical, but they must be substantially equal. It is job content, not job titles, that determines whether jobs are substantially equal.”

The EEOC has historically focused on pay differences between two specific genders. At 2nd Story, we expand this statement to includes folks of any gender, sexual orientation, race, religion, national origin, age, religion, immigration status, ability, and any marginalized or underrepresented group. People must be compensated equally for substantially similar work, regardless of identity.

Pay equity means equal pay for equal work, or compensating people without discrimination. 

It’s the principle that compensation should be fair, ethical, and proportional. 

We also consider 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 likely look different from pay equity at a theatre with a $100K budget.

2nd Story also recognizes that the pursuit of pay equity is an ongoing practice that must be rooted in transparency and a commitment to care. Key aspects of our practice include:

  • Equal pay for equal work: Workers performing the same or very similar jobs that utilize the same skills and efforts alongside similar responsibilities should receive the same pay. This also applies to jobs that may not be identical but are comparable. 

  • Addressing systematic discrimination: Actively identifying and addressing harmful patterns and policies within our organization, industry, or general economy that create unequal pay and opportunities based on race, gender, disability, age, sexual orientation, or other identities. 

  • Ongoing reflection: At 2nd Story, this includes annual evaluation of hours and workload by consulting with staff, the artistic company, and a sample of artists who have worked with the organization over the past season. It also includes looking at similar roles or responsibilities at other organizations. 

  • Radical imagination: We’re in a time where nonprofits often have limited or unpredictable funding, and we may not always be able to increase an artist’s pay. And while we can look to peer organizations for comparison, we acknowledge that underpayment in the arts and nonprofit sectors is widespread, and achieving equity requires expansive thinking, flexibility, and radical imagination. We can explore creative ways to recognize and support people, including:

    • providing professional development, mentorship, or networking opportunities

    • offering flexible schedules or paid prep/rehearsal time 

    • ensuring access to resources like rehearsal space or equipment

    • contributing towards travel or childcare expenses

    • publicly acknowledging contributions

    • creating meaningful roles in programming and decision-making

pay transparency

Minimum wage laws often exclude contract-based workers. In the arts this can be particularly impactful, as there are many actors, designers, directors, choreographers, painters, etc., who are paid as independent contractors (or via honoraria or stipends) leaving many artists outside of these protections. Compensation for creative workers is often far below the minimum wage.

Pay transparency is the open and explicit sharing of information about compensation and benefits. It is not a one-time disclosure, but an ongoing practice of clear communication. This practice can include:

  • Publishing salary ranges for positions, both internal and external

  • Clearly communicating promotion and raise processes, including criteria, timelines, and pay bands

  • Documenting total compensation in addition to pay, like benefits, stipends, or professional development opportunities. 

  • Open conversations about compensation philosophy, like why pay is set at certain levels, factors that influence raises, insight into the annual budget, or how performance is evaluated

  • Ensuring there’s a safe and well-understood way to discuss concerns. 

Employees also have the benefit of the National Labor Relations Act (NLRA) that protects:

  • Discussing wages: Employees can talk about and disclose their compensation with each other.

  • Coordinated actions: Employees have the right to act together with coworkers to improve wages or working conditions, including approaching a union or filing a complaint. 

  • Employer interference: Employers cannot threaten, interrogate, or retaliate against employees for discussing compensation. 

  • Policy violations: Any employer rule that prohibits employees from discussing pay or working conditions is likely a violation of the NLRA

At 2nd Story, we put this into practice by clearly stating stipends, rates of pay, and the approximate number of hours of the commitment in every artist offer or posting. For arts administrators, our job descriptions - both posted externally and on file internally - include compensation information. 2nd Story also posts rates of pay for artists, teaching artists, and staff on its website. The 2nd Story staff and board revisit pay, hours, and benefit information annually (at minimum.) This group is also engaged in ongoing dialogue about strengthening compensation as part of ongoing strategic planning.

Pay practice refers to the systems, policies, and day-to-day behaviors that determine when, how, and how reliably workers are paid. Pay practices can include how rates are set and communicated, how payments are processed, timelines, and how issues are handled when things go wrong.

pay practice

A pay gap is the measurable difference between the average compensation of one identity group when compared to another identity group. The most well-known example is the gender pay gap, which compares the differences between average compensation based on gender..  Pay gaps can also be measured across race, ethnicity, age, disability, sexual orientation, or a number of other factors. These differences are typically evaluated across industries or job types, but 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 gap

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 a worker can be paid according to federal, state, or local law. 

Every July 1, Chicago’s minimum wage increases per the Minimum Wage Ordinance. The Chicago minimum wage applies to any employer with 4 or more employees.  The minimum wage increases annually according to the Consumer Price Index or 2.5%, whichever is lower.

Chicago Minimum Wage Rates (as of July 1, 2025)

  • Standard workers: $16.60 per hour

    • This includes domestic workers like nannies, housekeepers, or caregivers.

  • Tipped workers: $12.62 per hour

    • Tipped workers are people who receive tips as part of their compensation, like restaurant servers or bartenders.

    • If a tipped worker’s wages plus tips do not equal at least the full minimum wage, the employer must make up the difference.

  • Youth Workers: $16.50/ per hour

  • Youth Tipped Workers: $12.54 per hou

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

Arts administrators, especially those not in leadership positions, are often compensated less than a living wage. In 2021, the Los Angeles Department of Culture and Arts 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 2025, according to the MIT Living Wage calculator, the living wage in Chicago, Illinois is $24.42*/hourly for 1 adult with 0 children. 

*2nd Story is currently compensating artists based on a stipend that is less than the MIT Living Wage for Chicago, IL.

living wage

thriving wage

A thriving wage goes beyond meeting basic needs. It allows people to access healthcare, support a family, pursue personal goals, save for the future, prioritize rest and well-being, or invest in meaningful life experiences. There’s no single magic number, and what constitutes a thriving wage may vary across individuals, communities, or circumstances.    

wealth gap

The wealth gap is the unequal distribution of economic resources. Those economic resources can include income, savings, investments, property, businesses, and personal assets and are measured in relation to debt and liabilities. The wealth gap highlights systematic disparities that affect long-term financial stability, intergenerational wealth, and access to opportunities.