Philadelphia, PA: Employers Prohibited From Inquiring Into Wage History

APPLIES TO

All Employers with Philadelphia, PA Employees

EFFECTIVE

May 23, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

In addition to its prohibition on credit checks and anti-wage theft ordinance, Philadelphia continues to strengthen its pay protection statutes with the new Wage Equity Bill (the “Bill”).  The Bill, signed on January 23rd and effective May 23rd, prohibits employers from inquiring into or requiring prospective employees to disclose their wage and fringe benefits history.

Employers are still permitted to ask applicants about their desired salary and benefits, and applicants can voluntarily disclose wage and benefit history.  However, employers cannot make such a disclosure a condition of employment, nor can they rely on prior wage/benefit history information to solely justify compensation decisions.  Employers must review their hiring procedures and ensure they do not inquire into wage history in any manner (inclusive, for example, of verifying salary at a past employer while conducting a background screening).

Employers will also be required to post a notice prepared by the Philadelphia Human Relations Commission.  The City of Philadelphia is expected to publish the poster on its website once completed.

Action Items

  1. Train hiring and payroll staff to eliminate inquiries into, and compensation decisions based on, prior wage and benefit history.
  2. Revise any forms, policies or procedures that require verification of prior salary history.
  3. Check the City of Philadelphia website for posting closer to the Bill’s effective date.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

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