Philadelphia Postpones Salary History Ban

Labor and Employment Alert

Action Item: The City of Philadelphia has agreed to a court order postponing the effective date of a law that would prohibit employers from inquiring into a job candidate’s salary or benefit history during the application process. Nevertheless, employers in Philadelphia should be prepared to revise their hiring process if and when the law goes into effect.

As we wrote previously, the City of Philadelphia recently enacted a law banning employers from asking about a job candidate’s salary or benefit history. The law was scheduled to go into effect on May 23, 2017, but the Chamber of Commerce for Greater Philadelphia filed a federal lawsuit in early April that seeks to enjoin the law on the grounds that it is unconstitutional and violates Pennsylvania’s Home Rule Act. On April 19, 2017, the United States District Court for the Eastern District of Pennsylvania entered a stipulated order that stays the effective date of the new law until after the court rules on the Chamber of Commerce’s injunction request. However, employers should still be prepared to adjust their hiring practices on short notice in the event that the court lifts the stay or denies the requested injunction.

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