Philadelphia’s mayor signed a law this week that restricts employers from asking job applicants to disclose salary history information or to require disclosure of wage history. It also prohibits employers from relying on wage history of a prospective employee in determining the wages for the applicant, including the negotiation of an employment contract, unless the applicant voluntarily discloses that information to the prospective employer. The law prohibits retaliation against a person who refuses to provide wage history information.
The law applies to all employers doing business in Philadelphia, without regard to size. The law goes into effect on May 23, 2017. Philadelphia is the first city in the country to impose such a ban; Massachusetts enacted a law prohibiting employers from asking for salary information in August 2016, which will take effect July 1, 2018.
Comcast has threatened to challenge the legality of the Philadelphia law. The business community opposes the law as anti-business and increasing the cost of doing business in Philadelphia.
The Philadelphia City Council found the ordinance necessary to prevent discrimination and ensure equal pay for women and minorities.