June 2022

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Ohio; City of Toledo restricts pay history inquiries

10/03/19

Author: ADP Admin/Sunday, September 29, 2019/Categories: Compliance Corner , State Compliance Update, Ohio

The city of Toledo, Ohio has enacted an ordinance to generally prohibit employers from inquiring about an applicant's pay history. The ordinance takes effect on June 25, 2020.


Covered Employers:

The ordinance applies to employers located within Toledo with 15 or more employees working within the city. It includes job placement and other employment agencies, but does not include public employers, except for the City of Toledo.

Employment does not include work as an independent contractor.


Covered Applicants:

The ordinance applies to anyone applying for work that will be performed Toledo, regardless of whether the applicant is interviewed.


Prohibited Actions:

The ordinance prohibits covered employers from:

  • Asking about an applicant's salary history (including prior wage, benefits, or other compensation);
  • Screening applicants based on their current or prior salary history, including requiring their salary history meet certain minimum or maximum criteria;
  • Relying on an applicant's salary history when deciding whether to offer them employment, or when determining their salary, benefits, or other compensation; or
  • Refusing to hire or otherwise retaliating against an applicant who refuses to disclose their salary history.

Note: Salary history does not include any objective measure of the applicant's productivity, such as revenue, sales or other production reports.

Employers may ask about an applicant's salary expectations, as long as they do not ask about their pay history. Upon reasonable request (and after making a conditional job offer), employers must provide the applicant a pay scale for the position.


Exceptions:

The prohibitions don't apply to:

  • Any action taken by an employer or its agent pursuant to any federal, state, or local law that specifically authorizes relying on salary history to determine compensation;
  • Applicants for an internal transfer or promotion with their current employer;
  • An applicant's voluntary and unprompted disclosure of salary history information;
  • An employer's attempt to verify an applicant's disclosure of non-pay related information or conduct a background check, provided that if the applicant's pay history is disclosed, it isn't relied upon when determining their salary, benefits, or other compensation;
  • Applicants who are rehired by the employer within five years, provided that the employer already has pay history data for the applicant's prior period of employment; or
  • Positions for which salary, benefits, or other compensation are determined pursuant to procedures established by a collective bargaining agreement.


Compliance Recommendations:

Covered employers should review their hiring procedures and remove salary history questions from their application forms by June 25, 2020. Anyone involved with screening or interviewing applicants should also be trained on the law.

Please contact your dedicated service professional with any questions.

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