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As of September 1, 2020, employers in Philadelphia are prohibited from asking job applicants how much they earn.

About The Ban

Philadelphia passed a law that prohibits employers from inquiring about a candidate’s wage history. The bill was approved by the Philadelphia Commission on Human Relations.

This salary history ban applies to all job openings in Philadelphia, regardless of where the organization is headquartered or an interview is conducted. Read the Ordinance.

History Of The Bill

A salary history ban was initially considered in 2017. After some discussion, an ordinance was approved by the Philadelphia City Council. It did not reach the enforcement phase.

Several organizations expressed concerns about the proposed ordinance. The city was sued by the Greater Philadelphia Chamber of Commerce. They claimed the law would violate their commercial speech rights.

This case went on for nearly a year. In 2018, the U.S. Court of Appeals for the Third Circuit got involved. They decreed the city was permitted to create a salary ban. However, no law was implemented at that time.

The Reason For Philadelphia’s Salary History Ban

In 2020, the discussion was reignited following numerous public demonstrations about social justice and systemic racism. This prompted city officials to take another look at their legislation.

One of the primary reasons Philadelphia was considering this policy was to help eliminate a wage gap due to gender and racial factors. When city officials reviewed the issue again, they concluded similar bans have been effective in other locations. They referenced research that said this practice resulted in a 5% increase in salaries overall and even more for some groups who were deeply affected by discriminatory wage policies.

New regulations were added to the previous bill. Among them was the clarification that the ban would only be applicable for positions that are located in Philadelphia.

What Employers Should Know

Employers in Philadelphia should be aware that the salary history ban will be enforced as of September 1, 2020. As of that date, they may not ask applicants how much they earn, or use a candidate’s salary (if it is known) to determine what level of compensation they will offer.

Salaries can fluctuate to accommodate various factors. Philadelphia employers may set compensation based on:
• Market data.
• Salary expectations provided by a candidate.
• The amount competitors pay.

Best Practices

We’ve seen salary history bans throughout the United States. More are expected to be introduced. Employers everywhere are being encouraged to base salary amounts on job duties, travel and other factors - but not on how much a person earns currently.

Salary history bans are one example of best practices employers are encouraged to follow even if not required to do so by law. Others include removing questions about criminal records from job applications, running comprehensive background checks after an interview or conditional job offer and assessing convictions individually to help decide if they might warrant an adverse action.

If your organization is bringing on new employees, please contact us. Our team will help you customize screening packages for any position and develop a fair, transparent screening process. We are available to assist you Monday through Friday from 5am to 6pm PT.