Cleveland Enacts New Pay Transparency Law for Employers

Written By Lexx Thornton

Cleveland’s new pay transparency law takes effect today, bringing a major shift in how jobs are advertised across the city. The ordinance, which applies to most private employers with 15 or more employees, was approved unanimously by the City Council.  

The law mandates two key changes for employers: 

1. Salary Disclosure: All job postings must now include the expected salary range for the position. 
2. Pay History Ban: Employers are prohibited from asking applicants about their current or past pay rates during the hiring process. 

The primary goal of this legislation is to narrow persistent gender and racial wage gaps. By requiring salary ranges upfront, the law aims to: 

1. Inform Applicants: Ensure job seekers know the value of the position before applying. 
2. Prevent Underpayment: Stop applicants from being underpaid based solely on a previous, lower salary. 

The law will be overseen by the Fair Employment Wage Board, which intends to prioritize education and voluntary resolution rather than immediate penalties. 

1. Complaints: Job seekers have 180 days to file a complaint if they believe the law has been violated. 
2. Fines: If violations are not fixed, employers face civil fines: $1,000 for a first offense, and up to $5,000 for a third offense within five years. 

Cleveland joins other Ohio cities, including Columbus, Toledo, and Cincinnati, that have enacted similar wage transparency requirements.