Last month, the Columbus City Council passed Ordinance 0709-2023 (to be codified at CCC §2335) banning inquiries (to an applicant or other employer) into a job applicant’s salary history starting next year on March 1, 2024. This will require most employers with 15+ employees employed within the City limits to modify their job applications and processes, except for the state, federal and county governments. It does not cover independent contractors, collective bargaining agreements and permits employees to discuss their salary history during negotiations for new compensation. Employers may also rely on their own records of salary history for their current and recently former employees. Employers also may not retaliate against applicants who refuse to disclose their salary history. I’ve included the key language of the ordinance below.
Chapter 2335 - PROHIBITED SALARY HISTORY INQUIRY AND USE
2335.01 - Definitions
(A) "Applicant" means any person applying for employment to be performed within the geographic boundaries of the City of Columbus, and whose application, in whole or in part, will be solicited, received, processed, or considered in the City of Columbus, regardless of whether the applicant is interviewed.
(B) "Employer" means an individual, firm, limited liability company, partnership, association, labor organization, corporation, or any other entity whether or not organized for profit, that employs fifteen (15) or more persons on a qualifying wage, commission, or other compensation basis within the City of Columbus. “Employer” includes job placement and referral agencies and other employment agencies when such agencies operate on behalf of an entity that otherwise meets the definition of “Employer”. “Employer” does not include any unit of local, state, or federal government, except the City of Columbus.
(C) "Employment" means any occupation, vocation, job, or work, including but not limited to, temporary and seasonal work, part-time work, contracted work, contingent work, work on commission, and work through the services of a temporary or other employment agency for which the applicant is to receive wages or a salary. Employment does not include work as an independent contractor.
(D) "Inquire" means to communicate any question or statement to an applicant, an applicant's current or prior employers, or a current or former employee or agent of the applicant's current or prior employers, in writing or otherwise, for the purpose of obtaining an applicant's salary history, or to conduct a search of publicly available records or reports for the purpose of obtaining an applicant's salary history, but does not include informing the applicant in writing or otherwise about the position's proposed or anticipated salary or salary range.
(E) "Salary history" includes the applicant's current or prior wage, benefits, or other compensation. "Salary history" does not include any objective measure of the applicant's productivity such as revenue, sales, or other production reports.
2335.02 - Purpose The purpose and intent of this chapter is to elevate the best practices for hiring that promote pay equity. The practices addressed in this chapter can, if used, perpetuate issues of systemic discrimination related to the wage gap and wealth gap for women, especially women of color. To promote pay equity across the workforce in the City of Columbus, the following prohibitions are established.
2335.03 - Unlawful discriminatory practices regarding the use of salary history.
(A) Except as otherwise provided in division (B) of this section, an employer shall not do any of the following:
(1) Inquire about the salary history of an applicant for employment;
(2) Screen job applicants based on their current or prior wages, benefits, other compensation, or salary histories, including requiring that an applicant's prior wages, benefits, other compensation or salary history satisfy minimum or maximum criteria;
(3) Rely solely on the salary history of an applicant, except as provided in division (C) of this section, in deciding whether to offer employment to an applicant, or in determining the salary, benefits, or other compensation for such applicant during the hiring process, including the negotiation of an employment contract;
(4) Refuse to hire or otherwise disfavor, injure, or retaliate against an applicant for not disclosing salary history to an employer.
(B) Notwithstanding division (A) of this section, an employer may, without inquiring about salary history, engage in discussion with the applicant about their expectations with respect to salary, benefits, and other compensation, including but not limited to unvested equity or deferred compensation that an applicant would forfeit by resigning from their current employer.
(C) The prohibitions contained in this section shall not apply to any of the following:
(1) Any actions taken by an employer pursuant to any federal, state, or local law that specifically authorizes the reliance on salary history to determine an employee's compensation;
(2) Applicants for internal transfer or promotion with their current employer;
(3) A voluntary and unprompted disclosure of salary history information by an Applicant;
(4) Any attempt by an employer to verify an applicant's disclosure of non-salary related information or conduct a background check, provided that if such verification or background check discloses the applicant's salary history, such disclosure shall not be solely relied upon for purposes of determining the salary, benefits, or other compensation of such applicant during the hiring process, including the negotiation of a contract;
(5) Applicants who are re-hired by the employer within three years of the Applicant's most recent date of termination of employment by the Employer, provided that the employer already has past salary history data regarding the Applicant from the previous employment of Applicant;
(6) Employee positions for which salary, benefits, or other compensation are determined pursuant to procedures established by collective bargaining;
(7) Federal, state, and local governmental employers, other than the City of Columbus.
2335.04 - Complaint Procedure An applicant may file a complaint with the Community Relations Commission under Section 2331.05(A) alleging that an employer has engaged in or is now engaging in any violations of section 2335.03.
2335.05 - Civil Penalties Upon an administrative finding of violation by the commission, an employer may be subject to civil penalties outlined in Section 2331.05(B).
2335.06 - Severability If any provision or section of this chapter or the enforcement of any such provision or section is held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect or render invalid or unenforceable any other provision or section of this chapter. To this end, each of the provisions and sections of this chapter are severable.
2335.07 - Effective Date This Chapter shall take effect on March 1, 2024.
NOTICE: This summary is designed merely to inform and alert
you of recent legal developments. It does not constitute legal advice and does
not apply to any particular situation because different facts could lead to
different results. Information here can change or be amended without notice.
Readers should not act upon this information without legal advice. If you have
any questions about anything you have read, you should consult with or retain
an employment attorney.
