April 28, 2023

Columbus, Ohio, has joined Cincinnati and Toledo in banning employers from asking potential employees questions about their past compensation. The new ordinance will take effect on March 1, 2024. From then on, employers in Columbus can no longer ask prospective employees about their past salaries or wages. Here is what the ordinance covers.

• Employers cannot ask applicants about their salary history. Examples include current and past wages and benefits and other forms of compensation. However, objective measurements of the applicant’s productivity, such as sales or revenue, are not part of salary history.
• Employers cannot screen employees based on their current wages, salary history, or other compensation.
• Employers must not rely entirely on an applicant’s salary history in deciding whether to offer an applicant a job, wages, benefits, and other compensation to offer an applicant.
• Employers are not allowed to refuse to hire or otherwise disfavor, injure, or retaliate against an applicant if they do not disclose their salary history.
• An employer may discuss an applicant’s salary, benefits, and other compensation expectations.

Columbus’s ordinance does not require employers to disclose the pay scale for a job to applicants after making a conditional offer. This ordinance differs from Toledo and Cincinnati.

Who Does the Law Cover?

The ordinance will apply to any employer with fifteen or more employees in Columbus. It also applies to job placement and referral agencies. In addition, it applies to employment agencies working on behalf of entities that qualify as an employer for purposes of the ordinance.

An applicant is an individual applying for employment within the geographic boundaries of the City of Columbus. Such individuals can expect an employer in Columbus to solicit, receive, process, or consider the application.

However, the ordinance includes exceptions. For example, it does not apply to the following:

• Actions the employer takes under any federal, state, or local law that expressly authorizes the employer to rely on an applicant’s salary history to determine their compensation;
• Applicants applying for an internal transfer or a promotion with an existing employer;
• Applicant voluntarily disclosing their salary history without prompting;
• An attempt by the employer to verify non-salary-related information or perform a background check that results in the employer obtaining the applicant’s salary history; however, the employer cannot solely rely on this information when deciding on salary, benefits, and other compensation during the hiring process, including negotiating a contract;
• Jobs with the salary, benefits, or other compensation established through procedures agreed upon during collective bargaining; and 
• Federal, state, and local governmental employers, not including employees of the City of Columbus

Penalties

The new ordinance gives applicants who believe an employer has violated this ordinance the right to file an administrative complaint. Concerned parties can file the complaint with the Columbus Community Relations Commission. As such, employers who violated this ordinance could receive civil fines of up to $5,000. However, the penalties depend on the number of offenses.

Final Thoughts

Ordinances prohibiting employers from inquiring about salary histories during the hiring process have steadily increased. As such, employers should review their hiring policies to ensure they do not violate such regulations. The best means to ensure compliance is by working with a trustworthy background screening provider. The right partner is up-to-date with all applicable laws and will provide accurate reports.

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