In 2017, the City of Philadelphia enacted the Wage Equity Ordinance to address the pay gap between men and women and between different races and ethnicities. The Ordinance contains two provisions: the “Inquiry Provision,” which prohibits employers from asking about a prospective employee’s wage history; and the “Reliance Provision,” which prohibits an employer from relying on wage history at any point in the process of setting or negotiating a prospective employee’s wage. Mayor Jim Kenny signed the Ordinance into law in January 2017 after it was unanimously passed by Philadelphia City Council.

The Greater Philadelphia Chamber of Commerce, however, filed a lawsuit alleging that both provisions of the Wage Equity Ordinance infringed on the chamber and its members’ First Amendment freedom of speech rights. In the Chamber of Commerce for Greater Philadelphia v. City of Philadelphia et al., the Honorable Mitchell Goldberg from the Eastern District of Pennsylvania granted the chamber a preliminary injunction on the Inquiry Provision in April 2018, holding that the Ordinance violates employers’ freedom of speech rights. Judge Goldberg, however, upheld the Reliance Provision, which prohibits reliance on wage history, based on the court’s conclusion that such reliance did not implicate protected speech. In other words, Judge Goldberg found that an employer could ask about a candidate’s salary history, but could not use the information. Both parties appealed to the Third Circuit Court of Appeals.
Continue Reading Don’t Ask, Don’t Use – the Third Circuit allows the Philadelphia salary history ban ordinance to go into effect


This is the first in a series of blog posts concerning recent employment law developments in New York State and City:

On October 31, 2017, NYC’s salary history ban took effect (Int. 1253-2016). With limited exception, this law bars employers of all sizes from inquiring or requesting information – through any means, including searches of public records, background checks, and requests to prior/current employers – about a job applicant’s salary history, or relying on such information in setting compensation for a particular applicant.  The ban extends to virtually all wages, benefits, bonuses, commissions earned, retirement plans, profit percentages, auto allowances, and other compensation.  Nor can employers make disclosure of such information a voluntary option (e.g., on a job application).

Notably, the law applies not only to applicants for employment, but also to applicants for independent contractor work who themselves have no employees. It does not, however, apply to applicants for internal transfer or promotion within their current employer.

If an employer inadvertently uncovers information about an applicant’s salary history by, for example, searching publicly available information about the applicant, the employer may not rely on that information in determining what to offer the applicant in salary, benefits, and other compensation. On the other hand, if the applicant voluntarily and without prompting discloses his or her salary history, the employer may in fact consider such information in determining compensation terms.

Moreover, although the law bans all salary history inquiries, it does permit employers to inquire into an applicant’s compensation expectations or demands. The law also permits employers to make statements about the anticipated salary, salary range, bonus, and benefits for a particular position.

Geographic Scope

As to the geographic scope of the law’s coverage, the NYC Commission on Human Rights (NYCCHR), the local agency that enforces the law, has said that a violation of the Act can occur if the impact of the unlawful discriminatory practice is felt in New York City. More particularly, the NYCCHR has stated that “[i]f an unlawful discriminatory practice, including an inquiry about salary history, occurs during an in-person conversation in New York City, there will likely be jurisdiction because the impact of the unlawful discriminatory practice is felt in New York City.  If an unlawful discriminatory practice occurs outside of New York City, there could be jurisdiction if the impact of the unlawful discriminatory practice is felt in New York City.  Entities should apply the same jurisdictional analysis in this context that they would involving other areas of the City Human Rights Law (e.g., in the employment context, residency in New York City alone, without more, is generally not enough to establish impact in New York City).”
Continue Reading NY State of Mind: New State and City Laws (Part 1) – NYC’s Salary History Ban