Philadelphia Bars Employers From Requesting Salary History


We thought you might like to know of some very recent news in regards to recruiting within Philadelphia.

On Monday, January 23rd Philadelphia became the first city in the nation to bar employers from uthosking potential hires to provide their salary history. Mayor Jim Kenney signed the measure into law and said he’s confident the bill can withstand legal challenges.

The Philadelphia City Council had also unanimously passed the ordinance in December. Supporters content that this is a vital step toward closing the wage gap between men and women. Those opposing the bill agree the law goes too far in dictating how employers can interact with possible new hires and that it infringes upon an employer’s ability to gain important information during the hiring process.

The bill will officially become law on May 23rd.

What does this mean for employers?

First, you should review your job application, including online applications, to ensure compliance with the new law by removing all questions related to salary history. You need to educate your hiring managers, HR team, and anyone else involved in the recruitment process about the new rules including what they can and cannot ask throughout the entire interview process.

It will also be important to do proper benchmarking of your jobs so that you know what the local market is paying for each position. You will need to be confident that the compensation package you offer a candidate is fair and in line with the market.

Next steps

We will keep a close eye on this bill and, as the May 23rd deadline approaches, we will continue to provide updates. We are also available to help with your preparations including reviewing your job applications and helping to benchmark and conduct market research on positions. Please let us know if you need any assistance by contacting your consultant or info@tocgrp.com

References

This notice is being provided for informational purposes. Please feel free to contact The O’Connor Group for further information and to discuss how we can help your organization to be prepared for the May 23rd deadline.