Columbus, Ohio, recently joined other states and municipalities that have passed laws prohibiting employers from inquiring into a job applicant’s salary history. The following cities in Ohio currently have these ordinances:
- Toledo
- Cincinnati
The Columbus ordinance covers all business owners within the city with 15 or more employers and their agents, such as job placement or referral agencies. It prohibits employers from asking applicants about their salary history, current or former employer, or searching publicly available records to obtain their salary history. An applicant is considered to be any individual applying for employment that will be performed within the city’s geographic boundaries and whose application will be solicited, received, processed, or considered in whole or in part in Columbus.
The ordinance states that it’s an unlawful discriminatory practice for an employer to do the following:
- Inquire about an applicant’s salary history, including prior wage, benefits, or additional compensation
- Screen applicants based on their current wages, benefits, compensation, or salary history, including that an applicant’s salary history meets minimum or maximum criteria
- Rely solely on an applicant’s salary history when deciding whether to extend an offer of employment or when determining an applicant’s salary, benefits, or other compensation
- Refuse to hire or otherwise disfavor, injure, or retaliate against an applicant who doesn’t disclose their salary history
However, employers can still ask applicants about their salary, compensation, and benefits expectations. In addition, employers may inquire into objective measures of the candidate’s productivity, including revenue, sales, or other production reports.
Its’ prohibitions do not apply if another federal, state, or local law specifically authorizes reliance on salary history to determine employee compensation for a specific position. In addition, it applies to the following:
- Internal transfers or promotions with a current employer
- Voluntary disclosures by the applicant
- Positions for which salary or compensation are set by collective bargaining
- Applicants who are re-hired by an employer within three years of leaving the employer
This ordinance goes into effect on March 1st, 2024. Once it’s effective, all employers who fail to comply with its prohibitions permit an applicant to file an administrative complaint with the Columbus Community Relations Commission. Should you violate the ordinance, you could be subject to civil penalties of $1,000 to $5,000.
If you’re a GMS client and have questions, please contact your HR Account Manager. However, if you aren’t a client of GMS, contact us today to stay compliant with ever-changing laws and regulations.