In a move to promote wage equity and improve transparency in the hiring process, the City of Cleveland passed a new pay equity ordinance that imposes salary disclosure requirements and restricts the use of salary history in hiring decisions. The ordinance was signed into law by Mayor Justin Bibb on April 28, 2025, and is scheduled to take effect six months later, giving employers time to prepare.
Who Must Comply
The ordinance applies to employers with 15 or more employees operating within the City of Cleveland. This includes private employers, as well as city contractors and vendors who provide services to the city. Importantly, the law focuses on positions that are physically located in Cleveland, even if the broader organization operates outside the city limits. Remote positions may also fall under this ordinance if they are tied to a Cleveland-based office or if the employer is headquartered in the city.
Covered Individuals
The ordinance covers job applicants and employees working in Cleveland. It is designed to protect individuals applying for new positions, promotions, or transfers within organizations that fall under the ordinance’s scope.
Key Requirements for Employers
Employers who are covered by this new ordinance must adhere to two core obligations:
- Salary range disclosure: Employers are now required to disclose the salary range or pay scale for any open position in job postings. This range must reflect what the employer reasonably expects to pay for the position, taking into account internal compensation structures and market rates. This applies to postings for new roles, internal promotions, and transfers.
- Ban on salary history inquiries: Employers may no longer request or rely on an applicant’s wage or salary history when making hiring decisions. That means removing questions about prior compensation from applications, interviews, and background checks. Employers also cannot retaliate against applicants who choose not to disclose their salary history voluntarily.
Why This Matters
Pay transparency laws are part of a growing national movement to close gender and racial wage gaps. Historically, basing offers on past salary can perpetuate inequities, especially for women and people of color. By requiring employers to publish salary ranges and disregard salary history, Cleveland’s ordinance seeks to level the playing field for all job seekers.
Steps Employers Should Take Now
With the ordinance taking effect in late 2025, employers have a limited window to get their processes in order. Here are key steps to consider:
- Review and update job postings: Ensure every job listing includes a legitimate and reasonable salary range that reflects internal standards and market data.
- Eliminate salary history questions: Remove any questions about previous compensation from applications, interviews, and screening processes. Update related templates and forms accordingly.
- Revise internal policies: Update employee handbooks, hiring policies, and manager training materials to align with the ordinance. Clear guidance helps ensure compliance across all levels of the organization.
- Train HR and hiring teams: Provide focused training on the ordinance to recruiters, managers, and anyone involved in the hiring process so they understand what can and cannot be asked.
How GMS Can Support Compliance and Recruiting Success
Cleveland’s new pay equity ordinance is part of a larger trend taking hold across the country. From California to New York, and now right here in Ohio, more cities and states are adopting salary transparency laws and restricting the use of salary history in hiring. For employers, this means staying compliant isn’t just a one-time effort; it’s an ongoing process that requires attention to local, state, and federal employment regulations.
At Group Management Services (GMS), we support businesses nationwide by helping them navigate complex and evolving compliance requirements, no matter where they operate. Whether you’re hiring in Cleveland, Chicago, or across multiple states, we can help you:
- Craft legally compliant and competitive job descriptions
- Update employee handbooks to reflect city- or state-specific mandates
- Align recruitment strategies with pay transparency laws
- Train your HR and hiring teams to follow best practices and avoid risk
Don’t let local ordinances catch you off guard. With GMS as your partner, you can focus on growing your business while we handle the heavy lifting of compliance everywhere you hire.