Cavitch Familo & Durkin Co., L.P.A. attorney Max Dehn is a co-author of this article.
On April 28, 2025, the Cleveland City Council passed Ordinance No. 104-2025 aimed at combating discriminatory salary practices and promoting pay equity.
The Ordinance prohibits Cleveland employers from asking about an applicant’s salary history and requires Cleveland employers to list a salary range in hiring advertisements. The Ordinance becomes effective October 25, 2025, and it is important for Cleveland employers to review their hiring practices now to ensure compliance.
Who Does The Ordinance Apply To?
The Ordinance applies to any employer that employs 15 or more people within the City of Cleveland. This includes job placement agencies if operating on behalf of an entity that falls into the foregoing category. It does not include government employers, but it does include the City of Cleveland.
On the employee/applicant side, the Ordinance applies to any person applying for employment to be performed within the City of Cleveland and whose application will be solicited, received, processed, or considered in the City of Cleveland.
What Are the Ordinance Requirements?
Employers cannot ask about the salary history of an applicant, screen an applicant based on salary history, or rely solely on the salary history of an applicant when making a hiring determination. The definition of “Salary” includes more than just wages, commissions, and hourly earnings, and extends to benefits as well.
Employers cannot refuse to hire, injure, or retaliate against applicants for refusing to disclose their salary history.
Employers must provide a salary range or scale in any notification, advertisements, or other formal posting for employment opportunities.
What Are The Carve-Outs?
- Employers can still engage in discussions with applicants about salary expectations without inquiring about salary history.
- Employers can still take actions authorized by any federal, state, or local law that specifically authorizes the reliance on salary history.
- The Ordinance does not apply to applicants for internal transfer or promotions. It also does not apply to applicants who are re-hired by an employer who already has access to past salary information from their prior employment.
- Applicants may make voluntary and unprompted disclosure of their salary history.
- An employer does not violate the Ordinance if it learns of an applicant’s salary history during a background check but does not solely rely on the information during the hiring process.
- The Ordinance does not apply to applicants for positions governed by a collective bargaining agreement that determines salary.
What Are the Penalties?
Any person may allege a violation of the Ordinance by filing a written complaint with the Fair Employment Wage Board (“FEWB”) within 180 days of the violation. If the FEWB finds that a violation has occurred, the following penalties apply:
- The employer has the opportunity to correct its deficient processes, policies, or applications and must provide the FEWB with a credible plan for future compliance.
- If the FEWB determines that the employer has not resolved the issue, the FEWB can assess the following civil penalties:
- Up to $1,000 for offenders who have no prior violations within the last 5 years.
- Up to $2,500 for offenders who had one prior violation within the last 5 years.
- Up to $5,000 for offenders who had two or more prior violations within the last 5 years.
Any penalties assessed are appealable to the Director of Finance or their designee within 30 days. A final decision by the Director may be appealed further to the Board of Zoning Appeals within 30 days. The City can also initiate a civil action to collect unpaid penalties and recover costs.
How Can Cleveland Employers Protect Their Companies?
Cleveland employers should review all hiring materials, applications, and postings, as well as train staff involved in the hiring process about the requirements.
Reach out to Cavitch employment attorneys, Madilyn M. Maruna ([email protected]) and Max E. Dehn ([email protected]) to discuss auditing your business’ hiring practices and training your human resource staff about this Ordinance before it goes into effect.