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September 26, 2025
Effective October 27, 2025, the City of Cleveland’s new pay transparency ordinance will go into effect, with Cleveland joining several other municipalities and states, including California, Colorado, New York, Pennsylvania, and Washington, in addressing the concern that asking job applicants about their salary history perpetuates wage disparities. The ordinance notes that prohibiting employers from asking about salary history can help ensure that compensation is based on qualifications and experience rather than the applicant’s identity or background.
The ordinance applies to businesses with 15 or more employees within the City of Cleveland, including employment agencies, and prohibits employers from asking job applicants about their current or previous salaries during the hiring process, regardless of whether the applicant is interviewed. It also mandates that all formal job postings include salary ranges or pay scales, the City having recognized that lack of information regarding salary range on job postings often results in lower wages for less experienced negotiators.
Note, however, that “salary history” does not include any objective measure of an applicant’s productivity, such as revenue, sales, or other production reports. Also, the ordinance provides that an employer may engage in discussions with a job applicant about their expectations with respect to salary provided there is no inquiry about salary history.
There are several exceptions to the law, including applicants for internal transfer or promotion with a current employer, a voluntary and unprompted disclosure of salary history by the applicant, and positions for which the salary is determined pursuant to procedures established by collective bargaining.
The Fair Wage Employment Board (FWEB) will oversee enforcement of the ordinance, which provides for fines of up to $5,000 per offense. The ordinance also provides a procedure for filing a written complaint regarding alleged violations. If the FWEB finds it is more likely than not that a violation has occurred, it shall “attempt to resolve the complaint by methods of education, conference, conciliation, and persuasion with all interested parties.” The complaint shall be considered resolved if, within 90 days of receiving a copy of the complaint from the FEWB, the employer corrects its deficient processes, policies, and/or application materials, and the employer provides the FWEB with a credible plan to commit no further violations. If a penalty is imposed, the employer may appeal the FWEB’s decision to the City’s Director of Finance and then to the Board of Zoning Appeals.
Cleveland Employer Takeaways: Prior to the effective date of the new ordinance, employers should review their job postings to ensure compliance; train their Human Resources professionals and others involved in the hiring and recruiting process on the ordinance’s requirements, including amending applicable policies and handbooks; and review their job applications and related materials to remove questions regarding compensation.
The author of this article, Karen Edginton Milner, is a member of the Bars of Louisiana and Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Louisiana, Pennsylvania, Ohio, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
