A new law was passed on 23rd of January 2017 in Philadelphia prohibiting employers in the private sector from inquiring into applicant’s salary histories. It was signed into law by the City’s mayor, Jim Kenney. Philadelphia’s Chamber of Commerce went to court to challenge the law. The legal grounds were that it was unconstitutional and should, therefore, be declared null and void. The law was intended to close the wage gap between the males and females in Pennsylvania by barring employers from:
ü Independently obtaining an individual’s previous salary data without his or her knowledge or permission
ü Asking for information of job applicants regarding their previous salaries
ü Blackmailing prospects to reveal their former salaries to gain employment
ü Punishing and retaliating candidates who decline to disclose their salary histories
It will impact employers outside Philadelphia’s headquarters. It will also affect anyone doing business in Philly, directly or through third parties. The fines for violating the law stand at $2,000 for all the parties. The Chamber of Commerce received leave from the court to amend its complaint. It is, therefore, natural that the Chamber will file a new suit, but the complainant will have to identify the companies that ask for such information during interviews. The development could harm their PR. Many business leaders have shown a belief in wage-equality and intended to support the principles behind the laws. The most important part is the implementation by the enterprises and complying with the hiring and governance structures.
About Karl Heideck
Karl Heideck is an attorney practicing in the greater District of Philadelphia and has been a Hire-Counsel since 2015. His main areas of interests are furnishing employers with risk management services, Compliance Consultations, and Authorship. Karl Heideck has been instrumental in helping Philadelphians understand the law through his blogs.
Karl Heideck holds a Bachelor of Laws Degree from Temple University, James E. Beasley School of Law. He had attended the Swarthmore College in 2003 for his undergraduate studies. Heideck has been practicing independently for private citizens and companies. His experiences span for more than a decade. Karl was the project attorney at the Pepper Hamilton LLP and also an associate at the O’Brien and Company. Karl Heideck serves his Clients at his offices in Jenkintown, PA.